Warren Buffett has made a massive wager on oil prices this year. His company, Berkshire Hathaway, has built up a more than 20% stake in oil giant Occidental Petroleum (NYSE: OXY) and received regulatory approval to boost that up to 50%. Berkshire has also spent nearly $25 billion to take a sizable position in Chevron (NYSE: CVX). 

Those bold bets have paid off big time. Shares of Occidental have rocketed 145%, while Chevron's stock is up more than 35%, easily outpacing a more than 15% decline in the S&P 500. They could deliver even bigger gains for Buffett if Goldman Sachs is right about oil prices. The investment bank expects them to surge in the coming months -- returning to the recent peak of more than $120 a barrel -- once the market realizes that a recession won't offset persistent supply problems. That would give Buffett's oil stocks more fuel to keep rising. 

Analysts at Goldman Sachs have been pounding the table on oil prices for quite some time. While the bank has trimmed its oil price forecast for the second half of this year from $130-$140 a barrel to $110-$125, it kept its 2023 price target at $125 a barrel. Meanwhile, analyst Jeff Currie recently doubled down on that view, stating that oil would likely return to $120 a barrel as energy shortages in various regions come to light. 

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Source Fool.com