Brent Crude Soars Past $108 as Pipeline Closure Boosts Oil Prices
The recent closure of Saudi Arabia's east-west pipeline has led to a significant increase in Brent crude oil prices, which have surpassed $108 per barrel.
This development has put pressure on Goldman Sachs' forecast for December, which still predicts an oil price of $85 per barrel. However, Yufeng Cao, the Asia commodities trading chief at Goldman Sachs, believes that the current market is supported by higher China demand and lower Red Sea flow, putting Brent in a range of $90-$120.
Cao emphasized that his assessment is based on current trading conditions, not a replacement for the commodity research team's forecast. The team's projection still stands at $85 Brent per barrel for December 2026, with a target of $80 for WTI.
The resilience of inventories and adjustments to Middle Eastern supply have contributed to the lower price forecast. However, Cao believes that China's buying power will continue to increase on a quarterly basis. In contrast, Daan Struyven, co-head of global commodities strategy, is more cautious in his assessment of Chinese demand, stating that high prices may constrain imports.