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.