MW: Oil's recent correction a buy opportunity: Goldman
By Claudia Assis
SAN FRANCISCO (MarketWatch) -- The recent correction in crude-oil futures has provided investors with a buying opportunity, analysts at Goldman Sachs said in a note to clients released Tuesday. World economic growth will continue to drive demand growth "well in excess of" production growth from non-OPEC producers, and the oil market continues to draw on inventories and OPEC spare capacity in order to balance, they said. "In our view, it is only a matter of time until inventories and OPEC spare capacity will become effectively exhausted, requiring higher oil prices to restrain demand," Goldman said. Goldman expects New York-traded oil to trade at $115 a barrel in six months, and $126.50 a barrel in 12 months. Oil for July delivery CL1N +0.77% added 79 cents, or 0.8%, to $98.08 a barrel on the New York Mercantile Exchange, looking poised to snap a two-day losing streak.
