Oil Investors Flock to Infrastructure as Delivery Risks Skyrocket

The recent surge in oil prices has caused a shift in market dynamics, with investors focusing on infrastructure and existing assets rather than new drilling ventures.

Brent crude averaged $87 a barrel across 2026 according to the U.S. Energy Information Administration, while Goldman Sachs raised its December 2026 Brent forecast by $5 to $85.

The market is pricing in delivery risks, particularly through the Strait of Hormuz, which accounts for roughly a fifth of seaborne crude shipments.

Refining margins have increased significantly, with U.S. gasoline reaching a Labor Day record of $4.15 per gallon and diesel expected to reach $6 per gallon soon.