Oil Nears $97 on US-Iran Talks Stall, Aiding Goldman Sachs Trading
GS•Oil climbed toward $97 a barrel after stalled US-Iran peace talks and renewed Middle East fighting raised supply concerns. Goldman Sachs’ trading division may see higher commodity revenue from increased price volatility despite lower open interest in Brent futures.
1. Oil Price Surge
Brent crude approached $97 a barrel and West Texas Intermediate neared $95 after prices rallied over 7% in the first two sessions, driven by faltering US-Iran peace negotiations and intensified fighting in the Middle East that threatened supply flows through the Strait of Hormuz.
2. Impact on Goldman Sachs
Goldman Sachs’ commodity trading arm stands to benefit from heightened volatility and hedging demand, though a drop to the lowest open interest in Brent futures since August indicates dealers are cutting risk, which could temper trading volumes and margins.
