Oil exchange traded funds (ETFs) have crashed this week amid the onslaught in commodity markets, but bounced somewhat Friday after influential analysts at Goldman Sachs (NYSE: GS) predicted oil prices will recover and rally to new highs.
U.S. Oil Fund (NYSEArca: USO) entered Friday’s session down about 12% over the past week with the commodities complex falling back to earth after a frothy rally. The oil ETF pared earlier gains but was positive in recent trading after Goldman analysts said oil may top its recent highs by 2012 on supply concerns.
“It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year,” Goldman Sachs analysts said in a report, according to Reuters.
“We continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market,” Goldman said, Reuters reported.
The derivatives-based oil ETF is about flat for 2011 after the recent sell-off.
U.S. Oil Fund
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