WSJ.com - Goldman Raises Oil Price Forecast to $67/Bbl For 2005

WSJ reports that Investment bank Goldman Sachs (GS) sharply raised its forecasts for oil prices this year to $67 a barrel and said they will average an even higher $68/bbl in 2006. The bank's commodities unit cited tightening fundamentals and rising investment risks for the higher prices.

The report contrasts with March's headline-grabbing report from Goldman's equities analysts who warned prices could spike to $105/bbl.
The commodities unit had previously forecast prices for U.S. crude futures averaging $53.50/bbl in 2005 and $55/bbl next year.