Oil may touch new lows: Credit Suisse

Credit Suisse took a hatchet to its oil price forecasts as persistently low levels of crude force more optimistic analysts to revisit their assumptions.

Global Energy Economist Jan Stuart reduced his call for Brent and West Texas Intermediate in the first quarter of 2016 to $29.25 and $30 from $51.25 and $47.50, respectively, saying "the bottom is not yet in."

Those first-quarter forecasts are even lower than what the futures market is pricing in and are 20% or more below the consensus estimates, according to forecasts.

“Oil prices have collapsed early this year amidst rising recession fears and 'panic' levels of risk-appetite,” he wrote. “Until inventories actually begin to draw there is no fundamental support for spot prices; meaning that the same macro-head winds that helped crash prices in the last four weeks can again depress oil until, in our view, inventories begin to draw.”

HSBC also cut their estimates for crude oil over the next three years, citing the supply glut.