How Low Can Oil Go? Goldman Says $20 a Barrel Is a Possibility
- Goldman trims 2016 West Texas price forecast to $45 a barrel
- Surplus seen persisting next year amid OPEC output growth
Cheap Oil: The Good and Bad for the United States
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The global surplus of oil is even bigger than Goldman Sachs Group Inc. thought and that could drive prices as low as $20 a barrel.
While it’s not the base-case scenario, a failure to reduce production fast enough may require prices near that level to clear the oversupply, Goldman said in a report e-mailed Friday while cutting its Brent and WTI crude forecasts through 2016. The International Energy Agency predicted that crude stockpiles will diminish in the second half of next year as supply outside OPEC declines by the most since 1992.