Oil rose nearly 2% today after Goldman Sachs raised its price forecasts for Brent crude, saying demand from economic growth will eat into stockpiles and OPEC spare capacity.
Goldman raised its Brent price forecast to $115, $120 and $130 a barrel on a three-, six-, and 12-month horizon and boosted its year-end target for Brent to $120 per barrel from $105 and its 2012 forecast to $140 from $120.
A weaker dollar also lifted oil prices, which had declined 2% the previous session.
Brent crude for July delivery rose $2.15 to $112.25 a barrel, rallying from its early low of $109.5023. The US July crude rose $1.77 to $99.47 a barrel, having pushed as high as $100.09 and moved back above its 100-day moving average.
Oil prices showed little immediate reaction to news the United States announced new sanctions on OPEC-member Venezuela's state oil company PDVSA and six other smaller oil and shipping companies for engaging in trade with Iran in violation of a US ban.
