The experts of Goldman Sachs Group Inc (NYSE: GS) downgraded the value of Brent and WTI crude oil for 2015-2016 years. According to them, the maintenance of the excessive offer of black gold in the market may cause fall in prices to a level of $ 20 per barrel.
The forecast of the average cost of Brent in 2015 dropped to $ 53.7 a barrel from the expected $ 58.2 per barrel in May, and WTI to $ 48.1 per barrel, from $ 52 for a barrel.
The forecast of Brent price for 2016 worsened to $ 49.5 per barrel from $ 62 a barrel, the outlook for WTI getting to $ 45 per barrel from $ 57 per barrel, reports Bloomberg.
"The oil market is saturated even more than expected, and we anticipate the preservation of oversupply in 2016 - said Goldman Sachs analyst, Damien Courvalin. - In this regard, we lower oil price forecasts."
If the growth rate of global oil production will not change, prices could fall to $ 20 a barrel, when raw material supply will exceed logistics capacity and the capacity of the oil storage tanks, note the experts of the bank.
"This drop will be short; it can quickly change the balance of offer and demand", - says the Goldman Sachs report.
The probability of oil prices fall to a level of $ 20 per barrel is getting higher, but this market decline is not a base scenario forecast of the bank, noted Goldman Sachs.
Futures for WTI crude oil fell during the European session on Friday.
On the New York Mercantile Exchange, WTI crude futures for October delivery were traded at a price of $ 44.86 per barrel, dropping 2.31%.
The session low was $ 44.67 per barrel. WTI oil found support at $ 43.36, and resistance at $46.41.
Brent oil futures for October delivery fell 2.11%, reaching $ 47.86 per barrel. The price difference between contracts for Brent and WTI crude oil was 3.00 dollars per barrel.
The USD index, showing the relationship of the US dollar to a basket of six major currencies, went up 0.07% and was traded at 95.62 USD.