9 Mar 2015
US Crude could drop to USD 40/barrel
FXStreet (Mumbai) - The latest report from the investment bank Goldman Sachs sees US Crude dropping to as low as USD 40/barrel in the near-term. Crude prices are likely to reverse their gains as global crude inventories begin to increase again, with U.S. crude likely to drop as far as
USD 40/barrel in the near-term.
The price falls by almost 60% seen in the last year was followed by a rise in prices by a modest rise in January and February. "While we continue to forecast a strong demand recovery in 2015, we believe that sequentially weaker activity, the end of winter and the end of potential restocking demand, will lead to a sequential deceleration in demand-growth as we enter the spring”, said Goldman Sachs.
In the United States, Goldman said that "the build in U.S. inventories has surprised to the upside, especially in Cushing". The WTI Crude futures in the US currently trade at USD 49.53/barrel, down 0.16% for the day.
USD 40/barrel in the near-term.
The price falls by almost 60% seen in the last year was followed by a rise in prices by a modest rise in January and February. "While we continue to forecast a strong demand recovery in 2015, we believe that sequentially weaker activity, the end of winter and the end of potential restocking demand, will lead to a sequential deceleration in demand-growth as we enter the spring”, said Goldman Sachs.
In the United States, Goldman said that "the build in U.S. inventories has surprised to the upside, especially in Cushing". The WTI Crude futures in the US currently trade at USD 49.53/barrel, down 0.16% for the day.