Prominent U.S. investment bank Goldman Sachs have suggested that the price of a single barrel of crude oil could fall to as little as $20 (£13) per barrel as the oversupply of available oil continues into 2016.
If this was to happen, it would mean a reduction of over 50% on current prices. This would be good news for customers of oil products such as Shell Tellus S2 M 46, who would be likely to see big savings on the cost of running their vehicles and machinery.
According to experts at Goldman Sachs, homeowners and motorists would make significant gains if oil prices were to drop down to $20, but it could cause problems for the North Sea oil sector, members of which would see a significant drop in their profits as a result.
Speaking in a research note, Goldman Sachs said:
“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 … the potential for oil prices to fall to such levels, which we estimate near $20/bbl, is becoming greater.”
The value of West Texas Intermediate crude oil has already seen a significant drop from $107 (£69.35) last June to only $44 (£24.52) at present, and if it does reach a low of $20 it will be the first time since 2012 that the cost of a barrel of crude oil will have been so low in value.