Goldman Analyst Foresees $105 Oil 'Super Spike'
NEW YORK (MarketWatch) -- Goldman Sachs believes the oil markets have entered the early stages of a "super spike" period, which Analyst Arjun Murti defines as a band of oil prices that could be high enough to reduce energy consumption substantially and create a spare capacity cushion that could reduce energy prices return. Murti increased his super spike range to $50 to $105 per barrel from $50 to $80 per barrel. He also increased his 2005 forecast for West Texas Intermediate oil to $50 per barrel from $41 and his 2006 estimate to $55 per barrel from $40. Murti recommends adding to positions in the oil sector "at current prices, on a pullback, or even after rallies," and raised 2005 and 2006 earnings estimates across the board. His top picks in the sector continue to be Exxon Mobil (XOM) , Amerada Hess (AHC) , Bill Barrett Corp. (BBG) , Devon Energy (DVN) , EnCana Corp. (ECA) , Murphy Oil (MUR) , Newfield Exploration (NFX) , Pioneer Natural Resources (PXD) , Premcor (PCO) , Questar Corp. (STR) and Suncor Energy (SU) .
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