RE:Goldman $20 Oil PredictionDon't put too much weight on Goldman Sacks tea leaf predictions of $20 oil. Remember they have an agenda. Oil will not hit that target due to one simple reason. Supply and Demand.
WTI producers are cutting back on drilling feveroushly, that is why you have rig counts dropping and continued reduction of future investment into more drilling. Production is set to fall between 1/2 and 1 million barrels per day every 6 months. 500 billion of capital expenditure in North American oil industry has been cancelled.
This all boads for a tightening of supply as world demand for oil grows. Supply and demand will put a floor under the price. Now OPEC talking about cuts to stabilize the price. Plus WTI can now trade closer to Brent and frees landlocked oil. Green shoots are showing up that hold promise for higher WTI in the new year.
Ontario Dave