West TX Oil Drops to $81 on Expected Fall in Stocks

U.S. crude futures fell back below $81 a barrel on Tuesday in early Asian trade, pressured by Goldman Sachs slashing its price forecasts and expectations of a rise in U.S. crude inventories.

NYMEX crude for December delivery was down 42 cents at $80.58 a barrel by 0008 GMT, after settling down 1 cent on Monday. On Monday, the contract dropped to $79.44 per barrel, its lowest level since June 2012.  London Brent crude for December delivery was down 58 cents at $85.25 a barrel, after settling down 30 cents.

Citing rising production and insufficient demand, Goldman Sachs cut its forecast for Brent to $85 a barrel from $100 for the first quarter of 2015 and reduced its projection for U.S. crude to $75 from $90.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.