The price of oil could hit $20 a barrel according to one international expert

The price of oil could hit $20 a barrel according to one international expert

Oil prices could plummet to as low as $20 a barrelOil prices could plummet to as low as $20 a barrel as a massive supply glut persists until the end of next year.

This is according to at least one International expert.
Goldman Sachs published an oil report Friday headlined “Lower for even longer.”

The United States bank’s commodities team slashed its forecast for average prices in 2016 to $45 per barrel from $57, but said the risks of a collapse to $20 were growing.

He stated that one reason for this prediction was that OPEC would pump even more oil in 2016, led by increases in Saudi Arabia, Iraq and Iran.

Goldman Sachs believes the cartel’s resolve to defend its market share has been strengthened in recent weeks.

Prices will have to fall much further for OPEC to consider cutting production.

Another reason he cited was that producers outside OPEC, including U.S. shale oil companies, were proving more resilient to lower prices than expected. That’s because the cost of production is falling globally, because of greater efficiency and sharp declines in other commodity prices.
Finally the report stated that

oil-barrels-fallingGrowth in global demand for oil will slow next year. That’s largely due to China’s economic slowdown, which will hurt other countries, particularly those that rely heavily on commodity exports.

In August the Energy Chamber of T&T called on the country to “plan accordingly” as oil prices continued to tumble.

The call was made oil prices fell to a fresh six-year low.

The decline then was triggered by data which showed a surprise increase in US stockpiles, adding to a massive glut of crude around the globe.

The Chamber stated that it did not think that the current energy prices could sustain the recurrent expenditure of the country.

It also stated that whoever formed the next government, would have a lot work to do, predicting that increased taxes may be seen to make up for falling revenue.