Goldman, Morgan Stanley Bullish on Commodities Favoring Oil

Goldman Sachs Group Inc. and Morgan Stanley increased their forecasts for crude-oil prices by more than 20 percent, signaling a bullish outlook for commodities.

Goldman, which correctly advised investors to sell oil and copper last month before a price slump, boosted its 12-month prediction for Brent crude to $130 a barrel from $107, analysts led by Jeffrey Currie said today in a report. Morgan Stanley raised its estimate by 20 percent to an average $120 this year and by 24 percent to $130 in 2012.