Oil is on the edge!

16.09.2015 / 02:54

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Oil prices have been on a roller-coaster ride over the past year. West Texas Intermediate (WTI) oil tumbled late in 2014 from over $100 (£64.78) a barrel to just around $45 a barrel early this year.

After a recovery back to around $60 a barrel during the early summer, prices have gone through the floor again, down to $45.12.

But oil could go even lower.

The price of a barrel of oil could go to just $20 soon, according to Goldman Sachs analysts.

The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016.

The possibility for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater as storage continues to fill.

With Iran's nuclear deal looking relatively likely, another major source of oil will emerge in the near future.

There's a steep climb, and some fields will have to go heavily into debt or shut down if prices plunge to such a low level. But much of the production can be done with oil prices below $25 or ever below $20 a barrel.

Jr.Trader-G.Bozhidarov

Varchev Traders

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Oil is on the edge!

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