Think $122 a barrel is high? Think again.

Goldman Sachs’ Arjun Murti believes oil prices of $150 to $200 a barrel within the next six to 24 months are “increasingly likely”. Mr Murti is the analyst who three years ago correctly predicted a price “super-spike” above $100.

Moreover, Mr Murti notes, the current energy crisis may be coming to a head, given inadequate supply growth and the limited spare capacity at OPEC. Comments from OPEC president Chakib Khelil seem to contradict this statement, however Mr Khelil does not rule out the possibility of $200 price.
Super-spikes aside, Goldman also raised its 2008 spot target on West Texas Intermediate crude to $108 per barrel from $96 and its Brent target to $108 from $95.

All this comes with a caveat, of course. Says Mr Murti:

“Predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty.”