The brent crude oil prices have continued to be on a rise after the renewed US Iran war hovering above the $90 per barrel mark. Goldman Sachs said the Brent crude prices could climb above $120 a barrel in the fourth quarter if disruptions in the Strait of Hormuz continue.
However, it said this is not its central forecast.
Market sentiment has also been affected by threats in the West Asia war.
Oil exports routed through the Red Sea have become especially important in helping crude cargoes from the disrupted Persian Gulf reach global buyers.
“Escalation in the Middle East and the decline in estimated Persian Gulf flows to below 45% of pre-war levels have pushed oil prices back up,” it said.
Goldman Sachs’ base-case scenario assumes tensions in the Middle East ease, under which it expects Brent crude to average $80 a barrel in the fourth quarter and $75 a barrel next year.
However, the analysts said the risks to this outlook remain “tilted to the upside” because of continued shipping disruptions through the Strait of Hormuz and the possibility of further interruptions in the Red Sea, Bloomberg said in a report.
New Oil Warning: Crude prices Could Climb Above $120 A Barrel
