Oil prices have fallen to a six year low, with the cost of a barrel of crude sliding below the $50 mark.
More than 5% was shaved off the value of Brent Crude yesterday, which fell to $47.43, while WTI Crude ended the day at $46.07.
The price of oil is now at its lowest point since early 2009, having fallen rapidly from its highpoint of $115 last summer.
Against this backdrop, Goldman Sachs has slashed its forecast for oil prices.
Its estimate six and 12 month estimates for Brent Crude have been cut to $43 and $70, from $85 and $90 respectively.
Its WTI estimates have also fallen to $39 and $69 a barrel, from $75 and $80.
“We forecast that the one-year-ahead WTI swap needs to remain below this $65 a barrel marginal cost, near $55 a barrel for the next year to sideline capital and keep investment low enough to create a physical re-balancing of the market,” the bank said.
