Goldman Slashes Oil Forecast As Shale Dominates

Goldman Sachs expects oil prices to tumble into the next year as shale gas production continues to expand and oil supply outstrips demand, the investment bank's researchers said in a note on Sunday. Goldman lowered its forecast for WTI crude to $75 per barrel in the first quarter of 2015 from $90, and cut its Brent expectations to $85 a barrel from $100. Oil prices have been on a prolonged slide in recent months amid a supply glut. The researchers expect prices to begin rising again in 2016 as production growth slows. "We now have higher confidence that a structural transition has been reached and that U.S. production growth needs to slow," the analysts wrote. Crude for December delivery traded at $80.31 on Monday morning, while Brent for December delivery traded at $85.19.