Goldman Sees WTI Close to $40 per Barrel in First Half

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Employees work on drilling rigs at an oil well operated by Venezuela's state oil company PDVSA in Morichal July 28, 2011. Venezuela received an enviable honor last month: OPEC said it is sitting on the biggest reserves of crude oil in the world -- ... even more than Saudi Arabia. But the Venezuelan oil industry is also sitting atop a well of trouble. Picture taken on July 28, 2011. To match Special Report VENEZUELA/PDVSA REUTERS/Carlos Garcia Rawlins (VENEZUELA - Tags: ENERGY POLITICS BUSINESS) (Reuters)

Goldman Sachs said on Wednesday it expected prices for WTI crude oil to trade close to $40 per barrel for most of the first half of 2015 in one of the lowest forecasts among major investment banks.

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Goldman, one of the most active banks in commodities, said that after a very weak first half prices should recover to $65 per barrel for WTI and $70 for Brent.

"This suggests a strong recovery from current prices, but the timing is uncertain and we would wait for signs of stabilization (less inventory build and better roll yields) before shifting to a more positive stance on commodities," Goldman said in a note.

(Reporting by Dmitry Zhdannikov; editing by Jason Neely)