Could the oil price be heading for a super-spike?

The record high hit by crude futures this week could be the first in a series of tests of new highs. But will oil reach the $105 (or more) 'super-spike' level predicted by Goldman Sachs analyst Arjun Murti?

You may find it hard to believe that just three years ago Deutsche Bank analysts were forecasting a 2010 oil price of $24 a barrel. They were living in cloud cuckoo land.

The spike in oil prices that were way ahead of analysts' forecasts ensured that the oil majors consistently beat expectations in their quarterly results for years. This lead to a rerating of the sector - and a nice stream of profits for investors. I believe the same thing is about to happen again.

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