The price of crude oil has fallen below $80 a barrel for the first time in more than two years, after Goldman Sachs slashed its forecast for the first quarter of next year.
West Texas Intermediate (WTI) crude fell 1.6 per cent to $79.69 per barrel, its lowest since June 2012, while Brent crude dropped as low as $85.11.
In a note last night, Goldman analysts said they expected the price of a barrel of WTI crude to fall to $75, down from their previous forecast of $90, while their forecast for Brent was cut to $85 from $100.
The bank said it's likely output will outstrip demand in the first few months of 2015, while slowing global growth and an increasingly strong dollar are also pushing down price expectations more generally.
Oil prices have taken a tumble in recent weeks as the 12 members of the Organisation for Petrol Exporting Countries (Opec) resisted calls to cut down production in the face of falling demand. Opec members are due to meet in November to discuss their current target of 30m barrels a day, but the US is currently producing oil at its fastest rate in 30 years, while Saudi Arabia, the world's largest oil producer, has hinted it is unlikely to cut the amount it produces.
— UPDATE: This article has been changed to show WTI stands for West Texas Intermediate.