Citing an increase in production and growth in the American shale market, Goldman Sachs significantly reduced its average oil price forecast for 2019.

According to reports, Goldman is now predicting and average price of $62.50 a barrel for Brent crude this year. They had initially predicted prices would average around $70. A statement from the bank called out higher inventory levels combined with reducing growth. West Texas Intermediate crude forecasts were also reduced from $64.50 to $55.50.

Despite the more pessimistic forecast, oil prices have begun to creep up after dropping to end 2018. Both Brent and WTI saw about 2 percent per-barrel price increases.