Monday, October 27, 2014

Crude Oil Dropped Below $80/Barrel, Projected to be Below $70/barrel in 2015

Crude oil just broke $80.

In morning trade on Monday, the price of crude oil fell below $80 a barrel for the first time since mid-2012 as energy prices continue to plummet around the world.

The most recent drop in oil, which has been a bear market since topping out at about $107 during the summer, follows a cut in oil-price expectations from Goldman Sachs' Jeff Currie over the weekend.

Currie took his oil-price forecasts for WTI Crude to $75 a barrel in the first quarter of 2015 and to $70 a barrel in the second quarter of next year.

Longer-term, Currie expects WTI prices to stabilize near $80 a barrel, and Currie said that "uncertainty around the required price to slow down US shale production growth is a key risk to our forecast."


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