Oil prices: WTI falls below $35 on global glut fears as Goldman warns of $20 oil to come

Clara Guibourg
Follow Clara
Santa Ana Winds And Hot Conditions Stoke Wildfire In Ventura CountyƊ
Oil prices have slumped by more than half since last summer (Source: Getty)

US crude oil has just fallen below $35 fresh on the back of warnings of $20 oil to come.

Refuelled worries over a global glut have sent oil prices down again, with US benchmark West Texas Intermediate (WTI) trading at $34.69 a barrel in late-afternoon trading today.

International benchmark Brent crude wasn’t doing much better, dipping perilously close to 11-year lows to trade at $37.14.

Read more: Oil price forecast revised down yet again

Oil prices have slumped by more than half since last summer, when Brent crude was trading at over $100. Today’s fall follows on fresh data showing oil inventories increasing, worsening fears of a global oversupply.

And the worst may be yet to come for oil.

A Citi report released yesterday warned that WTI “needs” to fall to high $20s to combat “massive global stockpiles”.

Some are even more pessimistic. Goldman released a note today warning that storage levels are “too full for comfort” and that prices would likely be forced down to around $20 a barrel.

Brace yourselves...

Related articles