Goldman sees oil below $40 on Shale boom

The latest prediction from Goldman Sachs says oil market is searching for equilibrium and the prices could soon drop below $40 levels if there isn’t a sustained drawdown in US crude inventories and rig counts.

Goldman believes the OPEC should pursue a ‘shock and awe” approach i.e. an aggressive action without any clues to the public beforehand.

A couple of weeks ago, the investment bank had downgraded its three-month oil price forecast from $55 to $47.50.