We have already noted today’s pounding on gold mining stocks as the price of the yellow metal heads for $1,400 an ounce. Crude oil is taking a less severe beating, but a beating nonetheless.

Gold is down about 6.4% now, and West Texas Intermediate (WTI) crude oil is down about 2.0% while Brent crude is down about 2.3%. On top of that, analysts at Goldman Sachs said today that it has closed the company’s long position in Brent crude with a loss of nearly 15.5%.

Goldman’s analysts blame the dramatic drop in Brent pricing to excess capacity of European refineries. The bank worries that as more refining capacity comes back online after routine maintenance, prices will come under even more pressure.

Adding to the drop in price will be a shift of WTI crude from the middle of the United States to the Gulf Coast, putting further downward pressure on Brent pricing. Goldman thinks that could happen as soon as next month.

Goldman’s note is available here.

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