Goldman Sachs Sees $120 Oil Risk as Mideast Shipping Disruptions Intensify
Goldman Sachs has warned of a potential oil price surge to $120 per barrel if attacks on shipping in the Middle East escalate. This comes as tensions between the US and Iran have heightened, leading to disruptions in vessel traffic through key waterways.
The bank's commodities research team, led by Daan Struyven, co-head of global commodities research, noted that recent events suggest a broadening and intensification of shipping disruptions is a significant risk. This could lead to higher oil prices as supplies are impacted.
However, if exports from the region return to normal levels, Goldman Sachs expects oil prices to fall to $80 per barrel, according to Struyven's comments on Bloomberg TV. The bank also recommended investing in natural gas and diesel as a way to capture gains.