Oil prices fell more than 2 percent on Friday after Goldman Sachs cut its crude forecasts, citing global oversupply and concerns over the Chinese economy, and after Saudi Arabia dismissed the idea of an oil producer summit.
Core members of the Organization of the Petroleum Exporting Countries see no reason to cut production. Saudi Arabia thinks a summit of oil-producing countries would fail to produce concrete action toward defending prices, sources familiar with the matter said. The comments followed a meeting of Gulf Arab oil ministers in Doha, at which a Venezuelan proposal for an OPEC and non-OPEC summit was discussed.
Joining a long list of banks cutting their price forecasts, Goldman Sachs on Friday reduced its 2015 U.S. crude oil estimate to $48.10 a barrel, down from $52. The bank lowered its 2016 forecast for U.S. crude to $45 from $57 .
Investors largely ignored a relatively bullish report from the International Energy Agency (IEA).
The IEA said a move by the world’s big oil exporters in OPEC, led by Saudi Arabia, to defend their market share by not reducing production appeared to be working.