The most powerful investment bank in the worls is predicting a new trading range for oil, in the 85 to 95 dollars per barrel. Oil has been trading between 70 and 80 dollars per barrel over the last few months. Goldman Sachs sees upward pressures on oil both from the demand and supply side:
"The combination of good and bad news should drive oil prices out of their recent trading range and up towards 95 dollars per barrel, according to Goldman Sachs` David Greely.
The global economy had some notable upside surprises from the U.S. and Japanese economies recently, and will also benefit from oil supply disruptions in the North Sea, France, and Venezuela.
We believe the more important trading range for WTI crude oil prices is not the low $70-low $80/bbl range they have traded in since last October, but rather the $85-$95/bbl range that long-dated WTI crude oil prices have been trading in over the same time period, and we continue to expect that as the near-term fundamentals of the oil market continue to improve, strengthening timespreads will lift WTI crude oil prices into this $85-$95/bbl range." in The Business Insider
Related ETF`s: United States Oil Fund LP (ETF) (NYSE:USO)
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