Goldman: Oil will drop back to 2015 low of $45

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Andrew Cullen | Reuters

Crude oil will fall back to its low for the year, Goldman Sachs said in a note to clients.

The investment bank acknowledged Monday that it was wrong earlier this year in calling for oil prices to remain low, but said the rally that ensued will only give producers false confidence and make the downturn that much worse.

A return to the 2015 low of about $45 a barrel for WTI oil represents more than a 20 percent decline from current levels.