WTI oil trading at $88, Goldman talking prices higher again

17 December 2010 17 December 2010

BonTrade

WTI oil futures open today’s trading session flat at $88 a barrel as the week’s light trading session draws to a close, Goldman Sachs once again flags that oil prices should trade over $100 in 2011.

Latest WTI Oil Price

US Light crude oil futures for February 2011 delivery was trading at $88.22 a barrel, 08.00 GMT on the NYMEX, while the US dollar remained steady in currency market trading (as seen by a flat US Dollar Index).

Goldman Sachs and $100 Oil Prices in 2011

A drop in OPEC spare production capacity will signal a second stage in the oil market’s recovery, lifting WTI oil prices over $100 a barrel by the second half of 2011, according to banking giant Goldman Sachs.

OPEC member countries will supply more oil, reducing its spare capacity, as global inventory levels normalise, the bank said in its 2011 commodities outlook report.

“Crude oil inventories have declined rapidly in recent months as global demand growth has accelerated to one of the highest levels on record. We expect global demand growth to remain strong.” Goldman analysts led by London based Jeffrey Currie said in the report.

Goldman Sachs now forecasts that US WTI oil prices, American futures contract traded in New York, will rise to $89 a barrel within three months, $100 within six months and $105 within a year.