* Oil price falls reverse sharp August rally
* Output freeze would do little to rein in the glut - Goldman
By Henning Gloystein
SINGAPORE, Aug 23 (Reuters) - Oil prices fell early on Tuesday as analysts including Goldman Sachs (NYSE:GS) warned that August's price rally had been overdone, and that a proposed oil production freeze at current near record levels would not help rein in an oversupplied market.
International Brent crude oil futures LCOc1 were trading at $48.98 per barrel at 0032 GMT, down 18 cents from their last close.
U.S. West Texas Intermediate (WTI) crude was down 23 cents at $47.18 per barrel.
Analysts said the falls were a result of an overdone price rally this month which lifted crude by over 20 percent between the beginning of the month and late last week.
Since then, prices have fallen back by more than 3.5 percent.
"The narrative of a rapid re-balancing of the oil market has ... met a few stumbling blocks. Some of Q2's disrupted supply returned, OPEC's collective output rose, and U.S. shale oil is being spared the dramatic year-on-year declines forecast earlier in the year," French bank BNP Paribas (PA:BNPP) said.
Goldman Sachs said a proposal by members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers like Russia to freeze output at current levels "would leave production at record highs" and therefore do little to bring supply and demand back into balance. said it expects crude oil prices of between $45 and $50 per barrel "through next summer," but warned that "a sustainable pick-up in disrupted production would lead us to lower our oil price forecast with WTI prices ... to average $45 per barrel."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-Gobal oil product inventories are high
http://tmsnrt.rs/2br1O3U TAKE A LOOK-World oil glut persists as global slowdown looms