Friday, May 16, 2008

Another Oil Price Forecast

Goldman Sachs is forecasting a continued rise to oil prices for the rest of the year... in spite of current fundamentals that might support a price decline.

The near-term oil market is being driven by ``long-dated'' prices, or the price of oil for delivery 5 years forward, Goldman said. While an increase in U.S. stockpiles and declining demand growth due to the global economic slowdown is creating ``near-term fundamental weakness,'' this is not causing lower prices, according to the bank.

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