NEW YORK (AP) - Oil futures today rose to a trading record of
$122 a barrel. The momentum comes amid a forecast of higher prices
still and news hinting at supply shortages. Retail gas prices edged
lower, but appear poised to rise to new records of their own in
The new Goldman Sachs prediction that oil prices could rise to
$150 to $200 within two years seems to have prompted much of
today's buying. A falling dollar and increasing concerns about
declining crude production in Mexico and Russia have contributed.
Light, sweet crude for June delivery jumped to a new record of
$122 a barrel before retreating slightly to trade up $1.92 at
$121.89 on the New York Mercantile Exchange.
Oil prices have nearly doubled from about $62 a barrel a year
ago, which Goldman sees as a sign that the world is in the midst of
a "super spike" in oil prices. The analyst says in a research
note that prices will ultimately force demand to fall sharply.