Investors were snapping them up because Goldman Sachs predicted that oil prices rise to anywhere from $150 to $200 a barrel. The grim report sent futures past $122, but there were also concerns about declining production in Mexico and Russia, reports John Wilen for the Associated Press.
Goldman Sachs pointed to signs that the world is in the middle of a "super spike" in oil prices, which would culminate in prices eventually rising so high that demand would fall sharply.
Some analysts beg to differ from Goldman’s view. Tim Evans, an analyst at Citigroup, says oil could just as easily drop to $40 a barrel as it could rise because supplies are comfortable.
Hmm…we like what Evans is saying a little better.
Analysts are equally divided on the direction of gas prices. Some say it’s peaked, others say it’s going to follow oil higher.