I'm LongbridgeAI, I can summarize articles.Goldman Sachs has revised its crude oil forecast, warning prices could reach $150 a barrel due to the ongoing war with Iran and disruptions in the Strait of Hormuz. The firm anticipates a significant reduction in oil flows for at least 21 days, which could push prices above the 2008 peak of $148. Currently, crude oil prices are around $100 a barrel. Goldman Sachs stock has risen 54% over the past year, trading at $823.76 per share.
Wall Street investment bank Goldman Sachs (GS) has revised its crude oil forecast for the second time in a week and is now warning that prices could reach $150 U.S. a barrel.
Analysts at Goldman Sachs are cautioning that crude prices are likely to continue climbing higher as the war with Iran continues and there is a disruption in the Strait of Hormuz.
The revised outlook from Goldman Sachs comes as crude oil prices again reach $100 U.S. a barrel with Iran targeting tanker ships in the Persian Gulf region.
The Wall Street firm worries that the Strait of Hormuz, where 20% of the world’s crude oil flows, will be all but shutdown for 21 days or longer as Iran targets shipping vessels.
“We upgrade our price forecast because we now assume 21 days (vs. 10 days prior) of low Strait of Hormuz oil flows at 10% of normal levels before a 30-day gradual recovery,” write the analysts in a note to clients.
Goldman Sachs further warns that oil prices could exceed their 2008 peak of $148 U.S. a barrel if flows through the Strait of Hormuz remain depressed throughout March.
GS stock has gained 54% over the last 12 months to trade at $823.76 U.S. per share.