The fall seems endless as Brent oil reached a new lowest since April 2009 with the barrel just under $49. The WTI oil has decreased by more than 50% since July 2014, stabilizing around $47.5. Considering neither the OPEC nor North America plan any cuts in their oil production, the Brent and the WTI could drop to $42 and $41 respectively by March, said investment banking firm Goldman Sachs whose estimates for year 2015 have been reviewed at $50.4 and $47.15. French bank Société Générale updated its annual forecast as well sending the Brent at $55 and the WTI at $51. This is bad news for oil and gas producers who likely face impending rating downgrades. Indeed, “given this confluence of factors (weak demand and constantly-increasing production) there appear to be no immediate mechanisms to support higher oil prices in 2015,” said Standard & Poor’s credit analyst Thomas Watters.
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