Goldman Sachs is warning of another sharp drop in oil prices, saying some oil producers are eventually going to have to shut some wells because the coronavirus outbreak is crushing demand
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Goldman Sachs is warning of another sharp drop in oil prices, saying some oil producers are eventually going to have to shut some wells because of dramatic decline in demand due to the coronavirus outbreak.
Goldman says demand for jet fuel and gasoline is deteriorating as governments restrict travel or would-be travelers stay home. This will result in storage for fuel filling to capacity, which in turn will result in a glut of crude oil, forcing a sharp pullback in production.
Analysts at Goldman say Brent crude, the international benchmark, will remain around $20 in the second quarter — down from $29 a barrel now — but the price of the U.S. benchmark should drop…
Source news reuters.com, click here to read the full news.