Goldman Sachs lowered its forecast for 2016 to $45 from $57 while allowing “the possibility” of $20 oil. It was stated that the bearish trend will be continuing for crude oil. The price may be increased based on the following geopolitical news:
- economic recovery;
- a sharp drop in US shale oil production;
- non-OPEC producers cooperating with OPEC nations to cut production.
Many analytics do not agree with $20 forecast. For example, Dr. Fereidun Fesharaki (the Founder and Chairman of FGE) explained the theory of oil prices where the price could be anywhere within the support/resistance range. And J. P. Morgan said foresaw for oil to be in ranging condition as well.
Anyway, such a 20 dollar forecast may be interesting for oil traders in the paper market in speculative short-term trading way for example.
