Gary Cohn, Goldman Sachs’ (GS) President and COO told CNBC that oil could go as low as $30 a barrel.
“My view is we are probably in the lower, longer view. We could definitely get down to $30,” Cohn, a former oil trader, said in an interview Monday on “Closing Bell.”
For that to happen, he believes that the front end of the oil market is going to have to fall low enough versus the forward prices for crude in storage.
Global oil prices have plunged nearly 60% since peaking in June, driven lower by the U.S. shale oil boom and OPEC’s decision not to cut output quotas. On Tuesday, Brent crude was trading above $48 a barrel, while WTI was above $45 a barrel.