Goldman Sachs Predicts Lower Oil Prices Despite Growing Demand

Goldman Sachs bank experts say oil prices will drop this year and next, even though more people want oil. They think prices will fall because many countries outside of OPEC will produce much more oil.

The bank's experts predict these countries will make 1 million more barrels of oil per day over the next two years. This doesn't include oil from American shale rocks, which has been slowing down because prices are already low.

Goldman Sachs thinks oil will cost about $60 per barrel this year and drop to $56 next year. However, another bank called UBS disagrees. UBS looked at oil storage data and believes the oil market is actually balanced, not flooded with extra oil like Goldman thinks.

The situation is complicated because while Goldman expects more oil supply, they also raised their predictions for how much oil people will want. They now think demand will grow by 600,000 barrels per day this year.

Some experts worry that Goldman might be wrong about too much oil supply. If American shale oil production keeps slowing down and other countries don't produce as much as expected, oil prices could actually go up instead of down.