Goldman Sachs slashed its oil price forecasts, saying the market's "new normal" for crude means it's likely to remain lower for longer.
"The latest move is certainly a reflection of the clear shift in demand and supply fundamentals," Timothy Moe, co-head of economics, commodities and strategy, told CNBC at Goldman Sachs's strategy conference in London on Monday.
"We certainly did not expect the magnitude of the price decline in the second half of last year, so we have updated the demand and supply expectations."
On a three-, six- and 12-month basis, Brent will likely trade at $42, $43 and $70 a barrel, Goldman estimates, down from its previous $80, $85 and $90 a barrel forecasts, respectively.
For WTI, Goldman has $41, $39 and $65 a barrel forecasts on three-, six- and 12-month horizons, down from $70, $75 and $80 a barrel previously.