Goldman Sachs warns Brent could top $120 per barrel
Goldman Sachs is sounding the alarm: If tensions in West Asia keep disrupting oil routes, Brent crude prices could shoot past $120 per barrel later this year.
Right now, Brent was recently above $91 but has since fallen to $88.65, but Goldman's base case expects things to settle at $80 by the end of 2026 and drop to $75 next year, assuming conflicts cool off.
Persian Gulf oil flows under half
Oil supplies from the Persian Gulf have dropped to less than half of what they were before recent conflicts, making markets more fragile.
Disruptions in key shipping routes and tight diesel supplies, thanks to refinery issues and storms, are adding extra pressure.
To manage these risks, Goldman recommends hedging with long positions on European diesel for December 2026 through March 2027.
Basically: It is a wild ride for energy markets right now.