Goldman Sachs has downgraded its estimations for oil prices for this year, citing a potential rise in shale gas production, new projects and OPEC restrictions.
The investment bank now points to an average of $55.39 per barrel for Brent from its previous estimate of $56.76 a barrel. It also lowered its expectations for WTI to $52.92 per barrel from $54.80.
"We believe we are in a lower for longer environment until there is greater evidence shale deliverability is surprising to the downside or OPEC runs out of spare capacity," a team of analysts at the bank said in a research note on Monday.
Oil prices moved slightly lower on Tuesday morning. Brent was trading at $51.78 a barrel and WTI was being sold at $49.50 a barrel.