Goldman Sachs Boosts Oil Price Forecasts Amid Ongoing Mideast Shipping Disruptions
Goldman Sachs has raised its forecast for oil prices in response to ongoing shipping disruptions in the Middle East. The bank now predicts that Brent crude will reach $85 a barrel and West Texas Intermediate (WTI) will hit $80 a barrel by December 2026, up from previous estimates of $5 more per barrel.
The increase is due to Iran's continued restrictions on shipping through the Strait of Hormuz, a critical waterway for global energy supplies. Since the war began in February, Iran has limited the number of ships passing through the strait, with an average of just 10 commodity vessels transiting per day over the past 10 days.
Goldman Sachs warns that if Gulf oil output remains below pre-war levels, Brent crude could climb above $120 a barrel in 2027. Conversely, if production rises above previous levels, prices could fall into the $60s.