Goldman Sachs says the world has more oil than it had thought and expects prices to slip below US$40 per barrel, and maybe lower, because the glut may linger deep into next year.
On the same day, the International Energy Agency said production outside OPEC countries will drop sharply in 2016 with prices so weak.
Goldman analyst Damien Courvalin says these cuts may not be enough. He lowered his forecast for 2016 to US$45 per barrel from US$57. He says prices could collapse to around US$20 if production decreases too slowly.
Oil markets been unusually volatile, with the price of crude down 26 per cent in three months. Prices have risen or fallen more than three per cent on 14 trading days during that stretch.
