Crude prices flat after lower prices forecast

Crude prices were little changed at low levels Monday as Goldman Sachs lowered its outlook for crude prices next year on rising global supplies.

Light, sweet crude for December delivery moved down 1 U.S. cent to settle at 81 dollars a barrel on the New York Mercantile Exchange, while Brent crude for December delivery dropped 30 cents to close at 85.83 dollars a barrel.

Goldman Sachs sliced its forecasts both for Brent and New York crude prices next year on rising global supplies, especially the U. S. shale boom. The company said Brent will average 85 dollars in the first quarter of next year, down from a previous forecast of 100 dollars. It also lowered New York crude price for 75 dollars in the period from an earlier estimate of 90 dollars.

Jeffrey Currie, an analyst of Goldman Sachs, wrote in a report, "We believe that OPEC will no longer act as the first-mover swing producer and that U.S. shale oil output will be called upon to fill this role."

On the economic front, U.S. pending home sales climbed slightly in September, said the National Association of Realtors on Monday. The index, a forward-looking indicator based on contract signings, inched up 0.3 percent to 105.0 in September, the second-highest level since last September, but the gain was still lower than the economists'median projection of 1 percent.

Investors are also biding the closely-watched U.S. gross domestic product (GDP) report for the third quarter, which is scheduled out on Oct. 30, to get a more comprehensive view of the country's economic growth.