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Brent falls below $49

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Brent falls below $49

Brent crude has hit a 6-year low on the ICE Futures Exchange.

The price fell below $49 a barrel. The decline continues as analysts at Goldman Sachs Group Inc. cut their forecasts for Brent and WTI.

Brent crude for February delivery was traded at $48.97 a barrel on London's ICE Futures exchange at 10:24 Minsk time. It is the lowest price since April 2009, when Brent cost $47.26 in London, RBC reports.

Oil prices continue to slide amid forecasts of Goldman Sachs analysts who cut their predictions for Brent and WTI, Bloomberg reports. Oil prices need to trade near $40 a barrel in the first half of 2015 to curb investments in the US shale sector.

Goldman Sachs lowered its three-month price forecast for Brent to $42 from $80 a barrel.

“The market is still very much focused on the supply side,” thinks Michael McCarthy, an analyst at CMC Markets in Sydney. He notes that volumes remain high that shows a real commitment from the sellers even at these lower levels.

Earlier, analysts Bank of America Merrill Lynch said in a forecast that Brent crude would fall to $40 a barrel in the near term. Experts think the cost of the US WTI crude will drop to $35 a barrel, Reuters wrote. It will make either Saudi Arabia or non-OPEC countries cut production, the bank said in a research note.

The bank says to find a floor, the oil market needs to see non-OPEC supply curtailments, OPEC output cuts, or stronger global demand, but none of these seem to be materialising at the moment.

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