| What a difference a year makes. In January 2014, Goldman Sachs said it did not “expect a material collapse in oil prices,” citing Saudi Arabia’s preference for prices of around $100 per barrel, and the country’s position on being ready to cut production to support those levels. One year later, crude prices are hovering around $50 a barrel and the Saudi Arabia-led Organization of the Petroleum Exporting Countries has repeatedly declined to cut the supply.
Consequently, Goldman slashed its 2015 oil price forecasts last week, predicting that “this bear market will likely be characterized by more of a U-shaped recovery and will likely rebound to far lower price levels from where they sold off.”..............................................Full Article: Source
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