Khaberni - Goldman Sachs said that oil prices are likely to exceed $100 per barrel next week if no signs of resolving the severe crisis disrupting the flow of oil through the Strait of Hormuz appear, warning that the upside risks to its baseline predictions are increasing more rapidly.
The bank stated that it intends to revise its oil price forecasts soon if no evidence supports its assumption that the flow of oil through the Strait of Hormuz will gradually return to normal in the coming few days.
Its current forecasts for Brent crude prices are $80 per barrel in March and $70 per barrel in the second quarter.
The bank added, "We now also believe that it is likely that oil prices, especially refined products, will exceed the peaks of 2008 and 2022 if the decline in oil flows through the Strait of Hormuz continues throughout March."
Crude oil is expected to record its strongest weekly gains since the extreme volatility experienced during the coronavirus pandemic in the spring of 2020, after the conflict in the Middle East led to a halt in shipping and energy exports through the vital Strait of Hormuz.
Goldman Sachs currently estimates that the average daily flows through the Strait of Hormuz have decreased by 90%.
A spokesman for the Iranian Revolutionary Guard challenged U.S. President Donald Trump to deploy U.S. warships to escort oil tankers through the Strait of Hormuz.
