Goldman Sachs: If Strait of Hormuz Supply Disruption Lasts Five Weeks, Brent Crude Could Rise to $100

Odaily According to Goldman Sachs, persistent geopolitical uncertainty could keep oil prices at a risk premium, leading to an upward revision of the average oil price forecast for the second quarter. The bank raised its Brent crude price forecast from $66 to $76 per barrel and its WTI crude forecast from $62 to $71 per barrel. Analysts noted that if the supply disruption in the Strait of Hormuz continues for approximately five more weeks, Brent crude prices could climb to $100 per barrel. Goldman Sachs also stated that in the event of a brief export collapse followed by a gradual recovery, inventories in OECD countries could be rapidly depleted, and crude production losses in the Middle East region could reach around 200 million barrels. (Jin10)