Bloomberg reports analysts at Goldman Sachs are calling $105 oil cheap because hurricane-related losses reinforce the probability crude oil will reach $149 a barrel by year's end.

Analysts Jeffrey Currie in London and David Greely in New York wrote in a report yesterday that robust emerging market oil demand growth “against a backdrop of continuing non-OPEC supply disruptions” will continue to have an upward effect on prices.

Further, the analysts wrote Hurricane Gustav this week was “just another in a long list of supply disruptions” that cut 40 million barrels of crude oil from the world markets last month.

Crude oil fell 28 cents today to close at $109.42 a barrel in New York on the New York Mercantile Exchange.

See Toddo’s thoughts in Toddo on TV: Out of Energy.

From the Bull Pen: Those bullish can play the oil ETF (USO); one option could be to set an initial position here and add on any weakness to $80 support; sell stops can be below that level.

From the Bear Cave: Although the correlation isn’t perfect, bears expect airline stocks to fall, should crude oil rapidly increase in price. Continental Airlines (CAL) may be a downside option; sell stops can be set above $19.50.