Oil Prices Fall after Goldman Comments

Oil prices fell in early Asian trading on Tuesday after Goldman Sachs said that prices needed to remain low in coming months to achieve a slowdown in U.S. production growth.  Brent May crude had dropped almost half a dollar to $57.65 a barrel by 0017 GMT. U.S. May crude was down 39 cents at $51.76.

The fall came after prices jumped more than 5 percent on Monday as traders reassessed how quickly Iran might increase exports after a preliminary nuclear deal and anticipated that a months-long rise in U.S. crude inventories may be slowing.  Goldman said in an overnight note that it saw little upside for its $40 a barrel forecast over the next three months.

“Prices need to remain low in coming months to achieve a sufficient and sustainable slowdown in U.S. production growth,” the bank said.  “The outlook for U.S. production in 2016 in turn leaves risk to our $65 per barrel forecast as skewed to the downside.”