Oil supply will be "critically tight" in 2012 and prices are likely to surpass recent highs as...

|By:, SA News Editor

Oil supply will be "critically tight" in 2012 and prices are likely to surpass recent highs as spare production capacity and inventories are "effectively exhausted," Goldman Sachs says. Goldman's estimate of the amount of oil production OPEC holds in reserve is smaller than that of most other analysts, mainly because of differing views over Saudi Arabia's ability to increase output.