Quote:
“People pay attention to what Goldman says,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago.
The bank cut 2016 estimates for WTI to $45 a barrel, from a May projection of $57. It also reduced its 2016 Brent crude prediction to $49.50 a barrel, from $62.
“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016,” Goldman analysts including Damien Courvalin wrote in the report. “We continue to view U.S. shale as the likely near-term source of supply adjustment.”
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Basically, they are saying that the expected slight rise in the value of oil for 2016 is very unlikely to happen. The opening of Iran to trade and any refinery issues could lead to even lower prices. This isn't going away soon.
http://www.thestar.com/business/2015...ces-lower.html
Edit : Sorry, didn't see that it was already being discussed in the layoffs thread.