Goldman Sachs has lowered oil prices forecasts for this year and the next one, arguing that values will continue to be low to guarantee that the supply will be reduced along time.
“We caution that a premature recovery in oil prices could curtail an oil supply correction, and prove self-defeating”, a team of the influential investment bank said in an equity research note, Reuters reports.
The bank said it expects the Brent to average $39 per barrel in 2016 and $60 in 2017, a downgrade with respect to previous forecasts of $45 and $62, respectively.
Goldman also cut its forecast for the West Texas Intermediate (WTI) by $7, reaching $38 per barrel for 2016 and by $2 for 2017, to $58.
According to the bank, the output will not reach the previous highs until mid-2018, as it foresees a slower recovery until next year, and deeper lows in production in 2016.