The steep sell-off in oil in the last week hasn't fazed many of Wall Street's banks, which continue to forecast soaring oil prices.

Concerns that the stumbling global economic recovery could dent oil demand have caused prices to decline around 10% since last Monday, but big banks have largely maintained their oil price forecasts.

In a note published Monday, Goldman Sachs Group (GS) defended its view that European benchmark Brent crude be at $120 a barrel by the end of the year.

Other big banks, such as Barclays Capital and Morgan Stanley (MS), have also kept their price forecasts unchanged.

Price forecasts from major banks are closely watched by investors seeking indications of where the market is headed next, and in recent months the banks have pointed in only one direction: up.

However, many analysts are critical of the banks' price view given clear signs that the global economy is now facing some very serious stumbling blocks.

"It seems overly optimistic at the moment," said Ole Hansen manager of the futures and fixed income trading desk at Saxo Bank. "Brent is trading in the $105-$120 a barrel range it has done since May so all is not lost for the bulls, but given the economic backdrop it seems a bit far-fetched at the moment."

-By Sarah Kent, Dow Jones Newswires; 4420-7842-9376; sarah.kent@dowjones.com