Analysts at Goldman Sachs, one of the most respected investment banks in US, have taken axe and further slashed forecast for crude oil surprise.

According to the bank, crude price might even reach $20/barrel in one scenario.

Analysts at the bank are now saying that crude oil market is more oversupplied than they had originally expected and now expects supply glut to continue in 2016 and keep oil price low for much longer horizon.

According to them, new risks have engulfed oil market, which is slowdown in China and emerging markets.

Analysts at the bank are now expecting WTI to be $38/barrel in a month compared to $45/barrel previously. In three months, it's looking for $42, from $49 previously. In six months, it envisages $40 from $54, and in 12 months, $45 from $60.

Bank says probabilities for the scenario for $20/barrel oil is rising.

According to the scenario, supply gap might diminish too slowly, leading to breach in logistical and storage capacity, though they have also mentioned it is not their base case for now.

WTI is currently trading at $45.1/barrel and Brent at $3/barrel premium.