United States crude oil prices fell below $80 per barrel Monday for the first time in more than two years as investment banking firm Goldman Sachs cut its forecast for the second quarter in 2015.
The West Texas Intermediate price, a benchmark for U.S. crude, was trading at $79.65 while Brent crude sank to $84.70 per barrel.
The decreases have potential implications for U.S. shale plays. A steep drop could deter future investment, though many analysts say domestic drillers have improved production capabilities enough to withstand a price of even $70 per barrel.
Myriad factors are playing into plummeting prices. Oil was fetching about $115 per barrel just a few months ago, but booming U.S. production combined with unexpected gains from Libya, an unanticipated move by Saudi Arabia to maintain production levels to secure market share, and suppressed global demand all are playing a role.
