Goldman Sachs has revised its oil price forecasts, projecting Brent crude to average $85 per barrel and West Texas Intermediate (WTI) at $79 this year, amid escalating tensions in the Strait of Hormuz. The firm anticipates a peak supply loss of 17 million barrels daily due to the crisis, significantly impacting global oil flows as Iran has effectively closed the Strait, which accounts for 20% of worldwide oil shipments. Currently, Brent trades at $112.69 and WTI at $99.60, both reflecting increased market volatility as geopolitical risks mount.
This situation underscores the fragility of oil supply chains and the potential for prolonged disruptions, which could keep prices elevated for an extended period. Goldman expects a gradual recovery in shipments over the next few months, but uncertainty remains, with some analysts predicting longer-lasting impacts on supply.
Market participants should closely monitor developments in the Strait of Hormuz, as any escalation could lead to sustained price volatility and heightened risk assessments in energy portfolios.
Source: oilprice.com