Goldman Flags Oil Price Surge to $120 as Shipping Disruptions Escalate
A recent warning from Goldman Sachs suggests that oil prices could surge to $120 per barrel if shipping disruptions in the Middle East escalate. The bank's co-head of global commodities research, Daan Struyven, cited the increased risk of attacks on shipping in the region as a major concern.
The current standoff between the US and Iran has already led to higher energy prices, with Brent crude trading near $97 per barrel. According to Goldman Sachs, there are two possible scenarios: oil could rally to $120 a barrel if exports from the region normalize, or it could drop to $80 per barrel if exports resume as usual.
Struyven also recommended that investors hedge their bets by investing in natural gas and refined-oil products. He noted that supply shocks are more significant in these markets than in crude oil, making them a safer bet for investors looking to capitalize on the current trend.