Goldman Sachs Warns Oil Could Surpass $120 a Barrel if Strait of Hormuz Disruptions Persist
Goldman Sachs analysts have published a note outlining two potential paths for oil prices amid ongoing disruptions to flows through the Strait of Hormuz due to heightened U.S.-Iran hostilities. Their base case assumes de-escalation by year-end, with Brent crude averaging $80 per barrel in Q4 2026 and $75 in 2027. However, if the Strait remains disrupted, they project Brent could surpass $120 per barrel by Q4 2026 and average over $100 in 2027. Current Brent prices have already surged above $90, a 30% increase from recent lows. The article notes that oil producers like Chevron can generate strong free cash flow even at $70 oil, suggesting the sector is well-positioned in either scenario. The analysis also includes a promotional segment for a Motley Fool investment service.
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