Saturday, May 17, 2008


NEW YORK - Oil rocketed to a new high near 128 dollars a barrel in New York Friday after a key investment bank hiked its forecast, adding to buying fervor.

Goldman Sachs, the most active investment bank in energy markets, predicted a jump to 141 dollars for the second half of the year for crude.

Goldman Sachs, which was one of the first in the market to call for crude prices to hit 100 dollars a barrel back in 2005, argued that global gross domestic product (GDP) growth will continue to outstrip oil production increases, pushing prices higher.

Saudi Arabia's oil minister, Ali al-Nuaimi, told reporters the kingdom has increased oil production by 300,000 barrels per day from May 10 in response to orders from customers, mostly from the United States, and will pump 9.45 million barrels per day in June.

Saudi Arabia is the biggest producer in the 13-nation Organization of the Petroleum Exporting Countries, which pumps 40 percent of the world's oil.

Oil prices have surged some 25 percent since the start of 2008, when they crossed 100 dollars a barrel for the first time…..CNA

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