Oil prices could reach $200 a barrel within the next two years, a Goldman Sachs report has found.

The warning comes as the price for US light crude passed the $122 mark for the first time on Tuesday.

Goldman Sachs energy strategist Argun Murti claims surging oil demand will create a "super-spike".

"We believe the current energy crisis may be coming to a head. A 'super-spike' end game may be in the early stages of playing out," said Mr Murti.

Mr Murti added that a chronic lack of supply would lead to a "dramatic and continuous rise in oil prices", followed at some point by a sharp decline in oil demand as prices force consumers to cut back their consumption.

Oil prices have surged by 25 per cent in the last four months and by a whopping 400 per cent since 2001.

Demand for oil is being fuelled by the rapid economic boom in China and India.

But John Hall, managing director of energy consultant John Hall Associates, told the Press Association such a jump was "highly unlikely".

In early Wednesday trading, US light crude dipped 21 cents to $121.60, while London's Brent fell 17 cents to $120.14.

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