U.S. crude futures dipped on early Asian trading on Tuesday following a sharp rally the previous session and as Goldman Sachs said it saw little upside for its $40 a barrel forecast over the next three months.
Crude oil 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. Saudi contract prices for oil supplies to Asia also rose, lifting Brent futures.
Following soaring prices on Monday, the market eased in early trading on Tuesday after Goldman Sachs said in an overnight note that “U.S. crude rebalancing (is) not over despite signs of stabilization” and “that prices need to remain low in coming months to achieve a sufficient and sustainable slowdown in U.S. production growth.”