Sept 1 (Reuters) - Further U.S. production cuts needed to rebalance oil markets will only happen if U.S. crude prices remain low, at around $45 a barrel, Goldman Sachs said late on Monday.
U.S. oil dropped to around $48 on Tuesday morning, curbing 8 percent gains recorded the session before after the downward revision of U.S. output data by the U.S. Energy Information Administration (EIA).
But Goldman said in a note that further, sustained U.S. output cuts would likely be necessary to rebalance oil markets by late 2016, which could happen at a price around its short-term U.S. crude forecast of $45 per barrel.
Oil prices have lost around half their value since June 2014 as record global output increasingly clashed with slowing economic growth, especially in Asia.
The Organization of the Petroleum Exporting Countries under leadership of Saudi Arabia has so far refused to cut production, instead keeping taps open in a bid for market share, but pressure by some of its members like Venezuela to reduce output has been rising in recent weeks. [ID: nL9N10A035] (Reporting by Vijaykumar Vedala in Bengaluru; Additional reporting by Henning Gloystein in Singapore; Editing by Joseph Radford)