Oil falls sharply as Goldman Sachs slashes Outlook

FXStreet (Mumbai) - Both the Crude oil benchmarks continued its sharp sell-off at the beginning of the new week as traders weighed lowered price forecasts for the commodity.

Currently, Brent oil traded at USD 50.52/ barrel and WTI oil traded at USD 47.49/ barrel, each losing over 1.50% on the day. Crude oil prices extended losses today after Goldman Sachs unveiled sharp cuts to its oil-price projections, with USD 47.15/ barrel expected for the WTI benchmark for this year, down from USD 73.75/ barrel previously.

In addition, Goldman Sachs also lowered its prices forecasts for Brent, which is now seen at USD 50.40/ barrel for this year, sharply down from its previous estimates of USD 83.75/ barrel.

The overall trend continues to be bearish for oil prices amid soaring US production and Saudi Arabia’s unwillingness to slash production.

Crude Oil Technical Levels

Brent oil has an immediate resistance which stands at 51.14 levels above which gains could be extended to 52.51 levels. Meanwhile, support is seen at 50.10 levels from here losses could be extended to 49 levels.