Oil to hit 150$

Oil prices are likely to hit USD 150 a barrel this summer season, the global head of commodities research at Goldman Sachs (GS.N) said on Monday, as tighter supplies outweigh weakening demand.

"I would suggest that the likelihood of that happening sooner has increased tremendously ... sometime in summer," Jeffrey Currie told an oil and gas conference in the Malaysian capital, referring to oil at USD 150 a barrel.

Goldman Sachs, the most active investment bank in energy markets and one of the first to point to triple-digit oil more than two years ago -- a once unthinkable level -- said last month oil could shoot up to USD 200 within the next two years as part of a "super spike."

Forecasts that oil could head towards USD 150 and above have multiplied over the past month as prices broke through several records, the latest being last Friday, when oil soared more than USD 11 a barrel on Friday, its biggest one-day gain ever.

Oil hit an all-time high of USD 139.12 on Friday on the back of a weak US dollar and mounting tensions between Israel and Iran.

Goldman Sachs forecast almost a month ago that U.S. crude would average USD 141 a barrel in the second half of 2008, up from a previous projection of USD 107, due to tight supplies.

"Demand for oil is weak but supplies are even weaker," Jeffrey Currie told the conference, citing supply disruptions in Nigeria and struggling output rise in Russia.

Investment bank Morgan Stanley, another big Wall Street energy player, said on Friday that crude may reach USD 150 by July 4 due to robust Asian demand and falling inventories.