Will the oil price be lower for longer?

Could US oil prices really fall to $20 a barrel? Analysts at Goldman Sachs predict it might.

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Could US oil prices really fall to $20 a barrel? It sounds like a mighty plunge from the current level of about $45. But that is the latest suggestion from analysts at Goldman Sachs, who reckon that "the oil market is even more oversupplied than we had expected". Goldman has a history of making headline-grabbing predictions for the oil market. In 2005, when oil was at a record above $50, it warned of a potential "super-spike" above $100 in 2007. Oil hit this level in early 2008. But its subsequent forecast of a possible surge to $200 didn't work out quite so well.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.