NEW YORK (Commodity Online): Goldman Sachs has forecasted that Brent crude oil prices could hit $127.50/barrel over the next 12 months on the back of declining inventories.
In a reports, the investment bank states that "We see the risks to our forecasts as skewed to the upside as world oil inventories have not been building despite Saudi Arabia pumping at its highest levels in 30 years and Libyan supplies returning to the market.
This suggests that the increased supplies have been absorbed by the market and leaves the world in the unprecedented situation in which OPEC spare capacity is at a trough rather than at a peak just as the world economic recovery is getting on a more solid footing”
Goldman has lowered their 12 month forecast for commodity returns but have remained bullish on both oil and gold. The firm has a 12 month prediction of $127.50/barrel for Brent oil prices and $1940/oz for gold.
