After months of outrageous oil price spikes, we realize that the shock value of $100 to $105/barrel
is fading fast, so we're going to skip ahead to $200/barrel. The finance wizards at Goldman Sachs have raised their outlook for 2008-2012 oil prices by $15 to a high end of $135 per barrel, but a major disruption could make matters much worse. How bad could it get? Goldman Sachs seems to think a spike to $150-$200/barrel is a possibility.
Goldman Sachs correctly predicted in 2005 that oil prices would reach the $50-$105/barrel level, and it thinks there's a chance that prices could drop down again, but inventories would have to rise over a couple years for that to happen. We can hope, but we won't hold our breath.