The Collapse In The Price Of Oil Continues

The Telegraph: Goldman eyes $20 oil as glut overwhelms storage sites

“The world is floating in oil. The numbers we are facing now are dreadful," said David Hufton from PVM Group

The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned.

Goldman Sachs told clients that the increasing glut of oil on the global market has combined with mild weather from a freak El Nino this winter. The twin-effect could send prices plummeting to $20 a barrel, the so-called ‘cash cost’ that forces drillers to abandon production. “Risks of a sharp leg lower remain elevated,” it said.

Oil has fallen from $110 a barrel early last year and is hovering near $40 for US crude, and $44 for Brent in Europe.

Update #1: Oil Prices Fall in Volatile Trade (WSJ)
Update #2: Weak demand tugs on crude oil prices (UPI)
Update #3: Oil Crash Means Biggest Boomers Halt Supply Growth in 2016 (Bloomberg)

WNU Editor: And they are predicting tougher times for oil producers ahead .... Oil traders prepare for next big price drop in March 2016 (Reuters). The impact on countries like Venezuela, Iraq, and other oil producers who are dependent on oil prices .... I am sure that their governments are looking at these projections with dread.