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Why Oil Prices Could Hit $40

By U.S. News & World Report

The outlook for oil investors continues to deteriorate in 2017, and Goldman Sachs now says WTI crude oil prices could be headed back below $40 per barrel for the first time in over a year.

Goldman Sachs analyst Damien Courvalin says the oil market needs to demonstrate some clear fundamental improvements or oil prices are destined to drift lower.

At this point, oil prices will only be stabilized by further production cuts from the OPEC or a consistent decline in U.S. crude oil stockpiles and rig counts, Courvalin says. “A failure for these shifts to materialize soon could push prices below $40 per barrel as the market tests OPEC’s and shale’s reaction functions,” he says in a report published Tuesday.

[See: Oil ETFs: 8 Ways to Invest in Black Gold.]

Oil investors were optimistic that the global market would stabilize in 2017 after OPEC announced a historic 1.2 million barrels-per-day production cut back in November. OPEC agreed to extend the production cut by nine months in May. But rising production from exempt OPEC members Nigeria and Libya, as well as non-OPEC producers such as the U.S., has offset much of the potential benefits of the OPEC cuts.

OPEC needs to make an aggressive move if it wants to keep prices above $40, Courvalin says. “We continue to believe that there is another opportunity for OPEC to increase the cuts, but that this should be done in a shock-and-awe manner, with little public announcement,” he says.

Goldman isn’t the only Wall Street firm growing increasingly skeptical of the oil market recovery. Earlier this month, Bernstein cut its 2018 oil price forecast from $70 to $50. The firm now predicts oil prices won’t recover to $70 until 2021.

Bernstein also recently downgraded oil and gas exploration and production stocks Devon Energy Corp. (ticker: DVN) and ConocoPhillips Co. ( COP) from “outperform” to “market perform,” citing concerns over slumping oil prices.

Last week, RBC Capital downgraded Exxon Mobil Corp. ( XOM) from “outperform” to “sector perform” and Chevron Corp. ( CVX) from “sector perform” to “underperform.”

[See: 5 ETFs to Invest in Exxon Mobil Corporation (XOM).]

The struggling oil market has dragged down the entire U.S. energy sector so far in 2017. The Energy Select Sector SPDR ( XLE) exchange-traded fund is down 14.5 percent for the year, making the energy sector the worst-performing sector in the entire Standard and Poors 500 this year.

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Why Oil Prices Could Hit $40 originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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