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      Goldman Sachs Projects Oil Prices Could Reach $120 Amid Middle East Tensions

      Goldman Sachs has outlined a significant range for oil prices, projecting a potential rise to $120 per barrel if tensions in the Strait of Hormuz escalate further. Conversely, the bank estimates a lower target of $80 per barrel if exports from the region return to normal levels. As of the latest report, Brent crude was trading near $97 per barrel.

      The bank has raised its forecasts for both Brent and West Texas Intermediate (WTI) crude by $5, now predicting prices of $85 and $80 per barrel for December 2026, and $80 and $75 for 2027. Goldman indicated that Brent could exceed $120 if Gulf output remains approximately 4 million barrels per day below pre-war levels, highlighting the precarious balance of supply and demand in the current market.

      Daan Struyven, co-head of global commodities research at Goldman Sachs, noted that the risk of shipping disruptions has increased due to ongoing geopolitical tensions, including recent military actions involving the U.S. and Iran. In light of these developments, Goldman recommends that investors consider long positions in natural gas and diesel instead of crude oil, as the supply shocks in these markets are perceived to be more significant. Diesel prices have more than doubled this year, reflecting the broader impact of the conflict on energy markets.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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