Investing.com - Crude oil turned lower on Monday after Goldman Sachs (NYSE:GS) cut its long term price forecasts on concerns over the high supply outlook, offsetting concerns over escalating geopolitical tensions in the Middle East.
On the New York Mercantile Exchange, crude oil for July delivery was down 0.21% to $60.44 a barrel, off session highs of $61.7.
Brent crude for July delivery, the global benchmark, was down 0.65% to $66.4 a barrel on the ICE Futures exchange in London.
Goldman cut its oil price forecasts for 2016 to 2020, saying that improved U.S. shale efficiency and production from OPEC will be more than adequate to meet future demand.
The announcement came after the investment bank warned last week that the recent rally in oil prices was “premature”.
U.S. oil prices have staged a recent rally after dropping more than half from June to January, amid expectations that U.S. output has peaked.
But global oil production is still outpacing demand following a boom in U.S. shale production and after OPEC's decision last year not to cut production.
On Monday Reuters reported that Iran's Deputy Oil Minister Rokneddin Javadi said OPEC was unlikely to cut output at its meeting on June 5.
He also said he was hopeful that Iran’s oil exports would return to pre-sanctions levels of around 2 million barrels per day within three months once a deal on limiting the country’s nuclear program is reached.
Oil prices had moved higher earlier Monday amid concerns over supply disruptions after Islamic State militants seized control of the city of Ramadi in western Iraq over the weekend.
Meanwhile, Saudi-led air strikes in Yemen resumed after a ceasefire expired on Sunday night, fuelling concerns over growing turmoil in the region.