Goldman Sachs Sees Brent Near $104/bbl as Gulf States Eye Conflict
Goldman Sachs’ commodities research warns Brent crude surged toward $104 a barrel after an 11% drop, lifting prices over 40% this month as Middle East tensions escalate and Gulf states consider joining the conflict. Co-Head Daan Struyven forecasts that only demand destruction can rebalance markets if hostilities spread further.
1. Oil Price Rebound
After plunging 11% in a single session, Brent crude has climbed back toward $104 a barrel, driven by renewed concerns over widening Middle East hostilities. US crude benchmark West Texas Intermediate has similarly advanced about 4%, reflecting heightened market sensitivity to geopolitical developments.
2. Gulf States Potential Escalation
Saudi Arabia and other Persian Gulf allies are reportedly close to deciding on direct involvement in strikes, a move that analysts warn could significantly escalate the conflict. Such participation risks further disrupting production and transit through the Strait of Hormuz, already responsible for millions of barrels of output.
3. GS Analysis and Market Outlook
Goldman Sachs Co-Head of Global Commodities Research Daan Struyven cautions that only demand destruction will restore balance if the shock persists. He notes Brent has risen more than 40% this month and warns prolonged tightness could force governments and consumers to curtail fuel usage.