Goldman predicts oil to hit $30 a barrel

Oil prices will fall to $30 a barrel in the next three months, Goldman Sachs said yesterday, as it lowered its 2009 forecast for oil prices to $45 a barrel, down from a previous prediction of $80 a barrel.

The forecast is an awkward U-turn for a bank that, until recently, had been one of the big bulls of the oil market and only a few months ago warned about the danger of a "super-spike" to $200 a barrel.

In the broader commodities asset class, the bank was also bearish, telling clients to underweight commodities, particularly relative to equities.

"Commodities will be one of the last asset classes to perform in a recovery," the bank said.

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