Goldman Sachs stated that oil prices are likely to exceed $100 per barrel next week if there are no signs of a resolution to the acute crisis disrupting oil flows through the Strait of Hormuz, warning that the upside risks to its baseline forecast are mounting rapidly.
اضافة اعلان
The bank noted that it intends to revise its oil price projections soon if no evidence emerges to support its assumption of a gradual normalization of oil flows through the Strait of Hormuz in the coming days. Its current forecast for Brent crude stands at $80 per barrel for March and $70 per barrel for the second quarter.
"We now also believe that oil prices, especially refined products, are likely to surpass the peaks of 2008 and 2022 if the reduction in oil flows through the Strait of Hormuz persists throughout March," the bank added.
Crude oil is expected to record its strongest weekly gains since the extreme volatility of the COVID-19 pandemic in the spring of 2020, following the Middle East conflict that halted shipping and energy exports through the vital Strait of Hormuz. Goldman Sachs currently estimates that average daily flows through the strait have plummeted by 90%.
Meanwhile, an IRGC (Iranian Revolutionary Guard Corps) spokesperson challenged US President Donald Trump to deploy American warships to escort oil tankers through the strait. Trump has demanded Iran's "unconditional surrender," a dramatic escalation of his demands after a week of war waged alongside Israel, which could make negotiating a swift end to the conflict more difficult.
Earlier on Friday, Barclays stated that Brent crude could reach $120 per barrel if the Middle East conflict continues for several more weeks. — (Reuters)
