Crude oil continued to extend losses on Tuesday as the global oversupply worries continues to weigh on the demand for the commodity.
Prices for the North American West Texas Intermediate (WTI) for December delivery fell 0.51% to $80.59 per barrel on the New York Mercantile Exchange, while futures for the European benchmark Brent crude for December settlement traded 0.68% lower to $85.25 per barrel on the London-based ICE Futures Europe exchange.
Analysts from Goldman Sachs cut their forecasts for crude prices for the first quarter for 2015, which dragged the commodity’s price lower.
The investment banking firm projected $75 a barrel for WTI, compared to the previous forecast of $90 per barrel. While Brent prices is expected to come in at $85 per barrel from the previous estimate of $100 per barrel.
Two separate crude inventories are expected to be released this week, one from the American Petroleum Institute, due later in the day. While another report from the Energy Information Administration will publish its report on Wednesday.
Free Reports:
The report from the Energy Information Administration in the US is expected to show a fall in US gasoline inventories by 700,000 in the week ended October 24, according to analysts. The report is also expected to show a decline in distillate stockpiles by 1.45 million.
The Organization of Petroleum Exporting Countries (OPEC) may not reduce its production target, according to Mohsen Qamsari, director for international affairs at National Iranian Oil.
The OPEC meeting is scheduled to take place on the 27th of November in Vienna as expected to conclude on whether to reduce global oil production to boost prices.
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