2015-11-21telegraph.co.uk

The world is running out of storage facilities for surging supplies of oil and may soon exhaust tanker space offshore, raising the chances of a violent plunge in crude prices over coming weeks, experts have warned. Goldman Sachs told clients that the increasing glut of oil on the global market has combined with mild weather from a freak El Nino this winter. The twin-effect could send prices plummeting to $20 a barrel, the so-called ‘cash cost' that forces drillers to abandon production. "Risks of a sharp leg lower remain elevated," it said.

The US investment bank said the overall glut in the commodity markets may take another twelve months to clear. It cited ‘red flag' signals on the Shanghai Future Exchange over recent days. Copper contracts point to "imminent weakening" in China's ‘old economy' of heavy industry and construction, it said.



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