Banks Boost Oil Forecasts Amid Ongoing Gulf Shipping Disruptions
Major banks have revised their oil price forecasts upward in response to ongoing disruptions in Gulf shipping. The revisions come as traffic through the Strait of Hormuz has significantly declined, impacting Brent crude and West Texas Intermediate (WTI) benchmarks.
Goldman Sachs, among others, has adjusted its forecast for late 2026 and beyond, citing expectations that Middle East shipping disruptions will persist into next year. Other banks like Citi, UBS, Barclays, and J.P. Morgan have also revised their oil outlooks upward in response to the Gulf disruptions.
The market has responded to these developments with an increased probability of crude oil reaching a new all-time high by the end of the year. Current market pricing suggests a 14% likelihood of such an event occurring by December 31.