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Tuesday, April 7, 2015

Oil prices fall as Goldman says prices have to remain low for months

oil

Oil futures fell on Tuesday from overnight gains of nearly 6 per cent after Goldman Sachs said prices needed to remain low for months to achieve a slowdown in US output growth.

Benchmark crude prices surged on Monday as traders reassessed how quickly Iran might increase exports after a preliminary nuclear deal and judged that a months-long rise in US crude inventories may be slowing.

Brent May crude had dropped 60 cents to $57.52 a barrel by 0339 GMT, after hitting $58.24 in the previous session, it highest since March 27.

US May crude was down 39 cents at $51.75 a barrel, after ending Monday at the highest closing price since Feb. 18.

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