RE:Any hedging over $100.00 is a bonus
On a related note, Goldman Sachs has increased their forecast for brent from a news article yesterday...
Goldman Sachs raised its three- and six-month Brent price forecasts on disruptions in Libyan oil supplies and the ongoing problems in Iraq, but maintained its 12-month outlook.
"In our view, the tightness in global inventories will likely peak in September and October, when we believe Brent prices can reach $115 (per barrel)," the brokerage said on Monday.
Goldman expects the current disruptions around export and production facilities in
Libya to continue with no near-term resolution of the conflicts.
Libya's oil production and exports have been crippled by violence and strikes, pushing exports to their lowest level since the 2011 civil war.
Goldman said Iraqi production was likely decline further in September on the back of maintenance and "debottlenecking" of the Basra export terminal in the South.
The bank increased its three-month price forecast to $110.00 per barrel and its six-month outlook to $108.00 from $105.00 for both time frames.
Brent crude oil futures for October were up 10 cents at $110.50 a barrel by 0930 GMT. Brent hit a four-month high of $111.53 on Thursday on concern that violence in Cairo might affect the Suez Canal, a major oil conduit.
Goldman, however, kept its 12-month Brent price forecast unchanged at $105 a barrel on expectations of stronger production growth into next year leading to a normalization of inventories by mid-2014.
The Organization of the Petroleum Exporting Countries pumps more than a third of the world's oil.
Investors remained cautious as they awaited more clues on when the
United States, the world's largest oil consumer, will start to trim a monetary stimulus program that has helped bolster asset prices such as oil over the last three years.