Goldman sees decline in US crude prices

Singapore

OIL prices will reverse their recent gains as global crude inventories begin to rise again, with US crude likely to drop as far as US$40 a barrel in the near-term, Goldman Sachs has said.

Oil prices rose by almost a third between January and February on the back of Middle East supply disruptions, strong winter demand and high refinery margins. That followed a rout that had seen price falls of around 60 per cent between June 2014 and January this year.