OIL: WTI recovers after Goldman Sachs outlook cut

The benchmark US crude recovered slightly in Asian markets on Monday after shedding almost 2% on Friday following an outlook cut from Goldman Sachs.

WTI was up 23c at $44.86/barrel on Monday as American producers also reported a drop in output, assisting a rebound in stocks despite Goldman Sachs lowering its 2016 forecast from $57/barrel to $45 on Friday.
Benchmark Brent was trading at $48.16/barrel, same as on Friday, while Goldman Sachs had also lowered the North Sea marker crude from $62 to 49.50 on Friday, based on oversupply concerns and a worrying outlook from China’s slowing economy.
The International Energy Agency (IEA) said on Friday that a cut in output from non-OPEC suppliers, especially the U.S., could lead to a rebalancing of the oil market next year, especially as cartel members remain adamant on maintaining output levels as their export revenues keep falling.
Crude prices have more than halved over the past year, with Brent tumbling from nearly $120 a barrel in the middle of 2014 to below $43 last month, according to Reuters. Prices collapsed as a global glut of crude pushed commercial and government inventories to all-time highs.
Analysts say the market is rebalancing, but high stocks will keep weighing on prices into next year.