Goldman Sachs says oil could fall to $20 a barrel

[Eugene]

Source: The Guardian

Goldman Sachs says oil could fall to $20 a barrel

Terry Macalister Energy editor
Friday 11 September 2015 17.33 BST

The price of oil could more than halve again, to just $20 (£13) a barrel, experts at Goldman Sachs are predicting, a shift which would spell big savings for motorists but cast doubt on the viability of North Sea oilfields.

Homeowners, motorists and many industries would gain although a further price collapse could prompt thousands more job losses in the struggling North Sea sector and could eventually hit Treasury tax revenues.

The value of the benchmark West Texas Intermediate crude has already fallen from $107 last June to less than $44 but analysts at Goldman Sachs forecast another huge plunge in WTI. It last traded at $20 a barrel in 2002.

“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 … the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater”, the US investment bank said in a research note.

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Read more: http://www.theguardian.com/business/2015/sep/11/goldman-sachs-says-oil-could-fall-to-20-dollars-a-barrel

[GitRDun]

1. Lol while they rush to hide their huge long positions....

[Frustratedlady]

2. I hope the price of oil dropping also affects the price of food.

It is out of control...not to mention the diminishing sizes of containers as the prices rise.

I just came home with $110 and the groceries nearly all fit in the infant seat. There were a few items in the bottom of the cart. Most items were fresh fruit/veggies, 2 packages of meat (for 1 person) and some bakery items. Will double-check the receipt and see if they scanned something wrong. Not unheard of. If they do so, the customer gets the money back and item for free.

[NickB79]

3. Low oil prices will SPIKE food prices in the long run

The lower the price of oil, the more of it we'll burn.

The more we burn, the faster we drive climate change, and the accompanying climate shifts.

Just look at the devastation climate change is having on California's farming industry. Low oil prices are decidedly NOT the answer to high food costs.

[hunter]

4. Sounds like a secret currency war against Venezuela and Russia...

The Western Oligarchs would gladly manipulate markets for that, and make up their "investment" later selling very expensive gasoline tomorrow to the folks who buy gas guzzlers today.