Goldman Sachs tips oil to hit $130
(Courtesy of the Oman Daily Observer) Singapore — Oil prices will likely rise to about $130 a barrel in the next 12 months as demand in emerging markets such as China and India make up for weak developed world growth, Goldman Sachs said yesterday.
Despite concerns about the US economy and euro zone sovereign debt, which have hit crude prices due to an expected fall in demand, the Wall Street giant forecast commodity prices to remain buoyant.
At the same time it tipped gold — a safe haven in times of economic uncertainty — to cost $1,860 an ounce in a year, much lower than the record high of $1,921.15 it hit last month.
The large emerging economies of the BRICS — Brazil, Russia, India, China and South Africa — are forecast to grow 7.7 per cent this year and 7.9 per cent in 2012.
By contrast, advanced economies are projected to expand only 1.7 per cent this year and 2.1 per cent next year, Goldman Sachs said.
Brent crude, which is traded in London, is expected to hit $130 a barrel in the next year, from current levels around $112, the bank said.
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