Going nowhere? The oil price recovery may stall as supply returns from conflict zones, Goldman Sachs said
by Jillian Ambrose
Oil prices continued to fall on Tuesday and may struggle to climb back over $50 a barrel for another year, Goldman Sachs has warned.
The price of Brent crude has tumbled more than 3pc so far this week to $48.58, reversing a rapid $10 ascent from around $41.60 a barrel in early August to highs of almost $52 a barrel last week.
The fall reflects growing concern that August’s rapid rise was overdone as oversupply continues to drag on the market.
Goldman Sachs told investors that oil prices could remain at between $45 and $50 a barrel for the next year, and could even fall lower if supply from politically volatile countries ramps up faster than expected.