Goldman Sachs: If the Strait of Hormuz disruptions persist, Brent crude could rise above $120 in Q4

Odaily Planet Daily News Goldman Sachs Group issued a report stating that if the disruption at the Strait of Hormuz persists, Brent crude oil prices could rise above $120 per barrel in the fourth quarter. However, Goldman Sachs also emphasized that this is not its base case scenario. The report writes: "The escalation of the situation in the Middle East, combined with estimates that Gulf flow has fallen to below 45% of pre-war levels, has driven the rebound in oil prices."

Under Goldman Sachs' current base case assumption, which expects tensions in the Middle East to ease, Brent crude is forecast to average $80 per barrel in the fourth quarter and $75 per barrel next year. Nevertheless, analysts point out that considering potential shipping disruptions in both the Strait of Hormuz and the Red Sea, the risks to the oil price forecast are "skewed to the upside." (Jin Shi)