Goldman sees oil above $70 by 4Q

Bank says crude will hit mark in ‘06 on demand alone, but Iran, Nigeria disruptions may speed pace.

LONDON (Reuters) – Investment bank Goldman Sachs raised its forecast for 2006 U.S. oil prices by $4.50 to $68.50 a barrel Thursday and said risks in Iran and Nigeria could push the cost above $70 long before the fourth quarter.

Goldman said in a research note it expects oil to breach $70 a barrel by the fourth quarter in any case because of strong demand.
“While we anticipate that WTI prices will move above $70/bbl by the fourth quarter of this year on the strength of demand alone, ongoing civil unrest in Nigeria and tensions surrounding the resumption of Iran’s nuclear research raise the near-term risk that significant supply disruptions could move WTI prices above $70/bbl much sooner,” the note said.

Reuters