LONDON: Oil prices renewed their declines, dropping below $49 per barrel as US bank Goldman Sachs slashed its short term forecasts and Gulf producers showed no signs of cutting production.
Goldman Sachs slashed it oil forecasts, saying fuel prices needed to stay low for much longer in order to curb production and end a global supply glut.
Jeffrey Currie, Goldman Sachs oil analysts said the collapse in oil prices over the last six months, which has brought North Sea Brent crude down almost 60 per cent to below $50 per barrel, would eventually balance the market.
Further they said crude oil prices could come down much but in the short term, possibly into the high $30s per barrel before the market saw a rebound.
