Goldman Sachs has made many extreme oil calls in the past -- like its call for oil to hit $150 to $200 a barrel. But today's call, that oil could slump to $20 a barrel on forecast oversupply, is sinking the price of oil: crude oil is down to $44.92, this morning (2% down). And the oversupply forecast is being exacerbated by a potential ramp up of Iranian oil production in 2016. Having said that, Goldman expects the market will adjust its production, which should lead to a bottom in oil over the next 6 to 9 months. Meanwhile, the International Energy Agency predicts that the markets will see the biggest reduction in non-OPEC supply in more than two decades as producers try to support prices.
U.S. equity futures were trading modestly lower this morning, with the Fed interest rate decision continuing to hang over the market.
Positive economic reports came out of Japan -- as its Business Survey Index showed solid gains from the second quarter, and Italy -- where industrial output rose 1.1%, the strongest gain in a year.
Some earnings reports of note today: Mattress Firm (MFRM), Brady (BRC), and Kroger (KR).
On the domestic economic docket, we have the August PPI Final Demand at 8:30 a.m. ET, with consensus forecasting a drop of 0.1%. At 10 a.m. ET, the University of Michigan preliminary September Sentiment report will be released, and at 1 p.m. ET, the Baker Hughes rig count will hit the wires.