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There is a glut of oil, apparently. And prices are going to drop – unless production is cut. But with the US pumping out oil and Iran keen to regain market share after sanctions are removed, oil could fall to as low as $20 a barrel, according to the investment bank. “We now believe the market requires non-OPEC production to shift from our prior expectation of modest growth to large declines in 2016,” Goldman said. “The uncertainty on how and where that adjustment will take place has increased.”

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