$40 Oil? That’s How Low Goldman Sachs Says It Needs to Go

Bloomberg reports:

Oil prices, which have fallen by more than half since June, need to drop even further and stay there for the first half of the year for the market to find a balance between supply and demand, Goldman Sachs Group Inc. says.

With OPEC resisting a production cut to stem the price slide, output reductions will come from U.S. shale drillers, who are pumping at the fastest pace in three decades, according to an e-mailed report by Goldman analysts including Jeffrey Currie in New York. Excess storage and tanker capacity suggests the market can run a surplus longer than it has in the past, so oil at around $40 for six months will be needed to slow U.S. producers, they said.

Socialists , like Bernie Sands and Barack Obama, will not be happy until gas is above $100 a barrel.