Goldmans: Oil price could plummet to $20 per barrel

Fears of OPEC oversupply

The price of oil could fall as low at $20 per barrel, according to Goldman Sachs Group, due to an underestimation of the global surplus.

A report by the group said a failure by oil producers to reduce production could lead to prices falling to $20 in order to clear the oversupply, which is larger than initially thought  with production higher than their 30 million barrels per day, reported Bloomberg. Goldman's analysts wrote: "The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China's slowdown and its negative EM feedback loop."...