Oil News

Oil rebounded from a decline yesterday after the New York- based bank raised its forecast to $85

Crude Oil rises slightly as Goldman predicts $85 a barrel

Oil rebounded from a decline yesterday after the New York- based bank raised its forecast to $85

Crude oil rose as Goldman Sachs Group Inc. said prices may reach $85 this year and the dollar dropped, increasing the allure of commodities as a currency hedge. Oil rebounded from a decline yesterday after the New York- based bank raised its forecast to $85 a barrel from $65 for the end of the year and withdrew its prediction prices will dip prior to a rally.

The dollar fell to $1.4228 versus the euro, prompting buying from traders who use crude and other commodities as a hedge against a weakening U.S. currency and inflation. “As the financial crisis eases, an energy shortage lies ahead,” Goldman analysts Jeffrey Currie in London and David Greely in New York wrote in a research report e-mailed today. The bank set a 12-month price target of $90 a barrel, up from $70, and introduced a forecast of $95 for the end of 2010. Crude Oil is trading at $67.00 as barrel as of 9:36am, London Time. Crude’s Pool-position is 95% Long, meaning that most Finotec clients are buying the commodity.