Oil prices fell for a fifth day on Tuesday, and Goldman Sachs (GS) analysts believe they’re going to drop much further. Although oil prices are trading at their highest level since December, driven by the quick reaction by U.S. producers as well as a large demand response, according to analyst Damien Courvalin, the global market imbalances are not solved and ‘the rally will prove self-defeating.’ He notes that the U.S. producer response remains short of the slowdown required, low-cost producers like Saudi Arabia and Iraq are on track to grow production sharply and access to equity and debt capital markets is back to being open. Goldman analysts forecast prices will retrace to their lows of $45 a barrel by October.
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