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Brent crude and West Texas Intermediate slumped on Monday trading at 5-1/2-year lows, the lowest since April 2009 and were negative for the last straight seven weeks. Brent Crude lost -2.71%, currently trading at USD48.75.27 a barrel. West Texas Intermediate declined by -2.30% currently quoted at USD47.25 as Goldman Sachs cut its 2015 price forecast foreseeing rising global supplies. Goldman Sachs does not see Saudi Arabia or any other major OPEC members to cut output rates in 2015 revising previous forecasts that the OPEC might do so. Societe Generale also cut its oil price forecast for 2015 citing a build up in oil storage and inventories in the first half of this year. Fires in refineries in Ohio and Pennsylvania over the weekend were further weighed on demand
The global glut continues in 2015 and a low global demand weighs amid record output from U.S. shale drillers. Both major brands lost more than 50% of their value since mid-2014 but the OPEC, responsible for 40% of worldwide oil-production, decided to leave output-rates unchanged around 30 million barrels a day.
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