WTI falls below $80 per barrel, Brent sheds gains

NEW YORK, Oct. 27 (UPI) -- While the European economy should be able to survive another crisis, a grim forecast Monday from Goldman Sachs pushed oil prices downward.

West Texas Intermediate crude oil for December delivery pushed below $80 per barrel, dropping more than $1.20 to $79.76 in early Monday trading.

Brent, the international benchmark price, fared no better, shedding $1.25 early Monday to post $84.86 for the December contract.

A lackluster European economy was in part dragging on oil prices, though much of the demand growth was coming from Asian economies outpacing their rivals in terms of gross domestic product gains.

The European Central Bank concluded Sunday that most of the largest banks servicing the European economy would be able to survive a major financial crisis.

A note Monday from Goldman Sachs, however, erased much of the confidence in an oil market recovery from the bear market that emerged in June.

Goldman cuts its forecast for WTI to $75 and Brent at $80 for the first quarter of next year. Long-term, the bank said WTI would reach $80 and Brent $90 by 2016. It said the forecast was lower because U.S. drillers could likely withstand a lower price.

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WTI falls below $80 per barrel, Brent sheds gains