Goldman Lowers Oil Forecast; Downgrades Oil Related Names Across The Board

The decline in crude oil prices will continue, at least according to analysts at Goldman Sachs. On Monday, Jeffrey Currie of Goldman Sachs lowered its oil price forecast while stating that supply growth from non-OPEC nations such as Brazil and Azerbaijan will prove to be greater than what is currently demanded across the world. Shares of oil related companies are expected to follow oil's decline as well, according to Currie who downgraded many names across the oil sector on Monday. Currie placed a $75 per barrel target for WTI crude. Oil has declined sharply in recent weeks on various news headlines. The U.S. is producing oil at rates it hasn't seen in three decades, while Russia's output is reaching near post-Soviet records. At the same time, OPEC is losing its influence, according to Currie who notes that the oil producing consortium may no longer be a “first-mover swing producer.” OPEC member nations will meet in Vienna next month while the U.S. Energy Department continues to evaluate how a move to lift a ban on domestic crude exports will affect fuel prices.