Goldman Sachs: If the Strait of Hormuz Disruption Persists, Brent Crude Could Rise Above $120 in Q4

Odaily Planet Daily News 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 also emphasized that this is not their baseline forecast scenario. The report stated: "The escalation of the situation in the Middle East and the estimated drop in Persian Gulf traffic to below 45% of pre-war levels have driven the oil price rebound."

According to Goldman Sachs' current baseline assumption, which expects tensions in the Middle East to ease, Brent crude oil is forecasted at $80 per barrel for the fourth quarter and $75 per barrel next year. Nevertheless, analysts pointed out that given the potential for shipping disruptions in both the Strait of Hormuz and the Red Sea, the risks to the oil price forecast are "tilted to the upside." (Jinshi)