Accelerating its months-long rout after
Oil slumped 5 percent to near six-year lows on Monday, accelerating its months-long rout after Goldman Sachs slashed its short-term price forecasts and Gulf producers showed no signs of curbing output.
US crude oil fell $1.98 to $46.38 after earlier slipping below $6 a barrel to $45.90 — its lowest price since April 2009.
Analysts at Goldman Sachs cut their three-month forecasts for West Texas Intermediate oil to $41 from $70 a barrel. The bank cut its 2015 crude forecast to $47.15 a barrel from $73.75.
At the same time, the average price of gas in the US fell on Monday to $2.13 a gallon — the 109th straight day gas prices have fallen, according to the AAA. With oil prices continuing to slide, motorists could see even lower prices at the pump at least in the near future.
A year ago, the average price of gas held at $3.31 a gallon, according to the AAA.
Despite declining investments in US shale oil, the main driver in the current supply glut, production will take longer to come down, Goldman said in a report.