Oil prices could fall below $40 per barrel this year as a supply glut continues to pressure the market.
Longer-term forecasts are also pointing to further downward pressure on prices over the next few years, amid predictions that the US will continue to ramp up production.
Crude has already slumped this year, with Brent oil futures currently hovering around $48 per barrel, down from $57 per barrel in January.
In a research report published on Tuesday, Goldman Sachs warned that oil prices could “soon” hit $40 per barrel unless global production retreats.
The warning comes as oil already appears to be on the back foot, with hopes of a positive impact on prices from OPEC´s pledges to cut production having been significantly disappointed.
Much of the abundant supply has been blamed on rising crude output in North America, with experts forecasting the trend to continue.
Yesterday, energy consultant firm Pira Energy claimed US oil exports were on course to rise sharply over the next few years, turning the US into one of the world´s largest exporters.
Such predictions cast further doubt over OPEC´s ability to prop up oil prices, with rising output from non-OPEC countries threating to further depress the market´s equilibrium.