Goldman Sachs (GS) Slashes Oil Forecast on Credit Concerns

Goldman Sachs Group (NYSE: GS) slashed its view on crude oil prices as it is concerned the global credit crisis may lead to weaker demand that will outweigh the supply constraints.

Goldman Sachs cut its three-month benchmark West Texas Intermediate crude oil estimate from $149 to $115 a barrel, and its six-month target from $142 to $125.

Although, Goldman did say the crude market was "substantially oversold'' and current prices present "compelling buying opportunities.''

The Goldman Sachs reports said, "We will stand by our bullish view on oil but just think it will now take longer to get to our previous price targets. The supply side of the market still remains severely constrained.''

Crude oil rose today, halting its worst two-day decline in almost four years.

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