Goldman Slashes Oil Forecast As Shale Dominates | Fox Business

NEW YORK – 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.