Goldman Sachs: Brent Crude Could Exceed $120/Barrel in Q4 If Hormuz Strait Disruption Continues

ME News reports that on July 21 (UTC+8), Goldman Sachs released a report stating that if the disruption in the Strait of Hormuz persists, Brent crude oil prices could rise above $120 per barrel in the fourth quarter. However, Goldman Sachs emphasized that this is not its baseline scenario. The report stated: “Escalation in the Middle East, along with estimated Persian Gulf shipping flows falling below 45% of pre-war levels, has pushed oil prices higher.” Under Goldman Sachs’ current baseline assumption—that tensions in the Middle East will ease—the projected Brent crude price is $80 per barrel in the fourth quarter and $75 per barrel next year. Nevertheless, analysts noted that given the potential for shipping disruptions in both the Strait of Hormuz and the Red Sea, the risks to oil price forecasts are “biased to the upside.” (Source: ODAILY)