Crude oil may rise to between US$150 and US$200 a barrel within two years as growth in supply fails to keep pace with increased demand from developing nations, Goldman Sachs Group Inc analysts led by Arjun Murti said in a report.
New York-based Murti first wrote of a "super spike" in March 2005, when he said oil prices could range between US$50 and US$105 a barrel through next year.
The price of crude traded in New York averaged US$56.71 in 2005, US$66.23 in 2006 and US$72.36 last year. Oil rose to an intraday record of US$120.93 yesterday on speculation demand will rise during the peak US summer driving season.
"The possibility of US$150 to US$200 per barrel seems increasingly likely over the next six to 24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty," the Goldman analysts wrote in the report on Monday.