Oil prices need to stay lower for longer to find equilibrium: Goldman

Singapore

OIL prices have to stay lower for longer in order for the market to find an equilibrium. Goldman Sachs analysts said this on Sunday, as they cut their oil price forecast following a similar move by Societe Generale (SocGen) on Friday.

"The search for a new equilibrium continues," said Goldman Sachs analysts.

Goldman slashed its estimate for Brent this year by US$33.35 to US$50.40 a barrel, and for US oil futures by US$26.6 to US$47.15 a barrel; SocGen reduced its Brent forecast by US$15 to US$55 on average for 2015, and for West Texas Intermediate (WTI) by US$14 to US$51 a barrel.

Brent crude oil fell US$1.26 to trade at US$48.85 at 10pm Singapore time on Mo…