Goldman Sachs Raises December Brent Crude Oil Price Forecast
The financial institution has revised its year-end oil projection upward in line with potential supply risks and conflict prospects in the Middle East.
Taking into account supply risks and the possibility of escalating conflicts in the Middle East, Goldman Sachs raised its December Brent crude oil price forecast from $85 to $90 per barrel.
Supply Risks and Price Revision
Goldman Sachs increased its December Brent crude oil price forecast from $85 to $90 per barrel, citing supply risks and the potential for conflict in the Middle East.
In an evaluation published by analysts led by Daan Struyven, attention was drawn to the impact of developments in the region on the markets.
Impact of Geopolitical Risk Premium
Analysts estimated that the geopolitical risk premium reflected in current oil prices is slightly above $20 per barrel.
It was stated that while regional supply adapting to new conditions over time could lower prices, an intensification of conflicts poses an upward risk.
US Crude Oil Expectations
Unlike Brent crude, the bank also shared its projections for US crude oil, which has been unusually low due to high US-Europe shipping costs.
Accordingly, WTI crude is expected to average $81 in December and $73 in 2027.