Goldman Sachs cuts oil price forecasts

FXStreet (Mumbai) - The investment bank Goldman Sachs reduced its oil price forecasts and expressed the possibility of oil dropping to USD 20/barrel.

The bank now sees Brent crude at USD 53.7/barrel in 2015 and expects prices to drop further to USD 49.50/barrel in 2016. On similar lines, WTI crude is seen falling to USD 48.1/barrel in 2015 and USD 45/barrel in 2016.

The global crude oil surplus is cited as a primary reason for a further drop in prices.