Oil prices have declined after Goldman Sachs suggested that prices could fall as low as $20 because of a global glut of crude.
Investors ignored a report from the International Energy Agency that said supply was tightening, as expensive oil producers left the market, in an apparent win for the OPEC cartel.
Just as analysts at Goldman Sachs predict the world could see a $20 barrel of oil because of oversupply, another set of energy experts have concluded that producers of expensive crude are beginning to cut production in response to the price collapse.
Oil that is expensive to produce is being driven out of the market according to the latest oil market report from the International Energy Agency. This means the strategy of the OPEC oil cartel of not reducing supply in order to defend their market share, appears to be working, the IEA concludes.
