Goldman Sachs expects oil to continue rising and warns that prices could surpass the all-time high of $147.50 set in 2008 if the Strait of Hormuz remains at a standstill.
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New trading tool for QQQ bulls“Brent is likely to exceed its 2008 all-time high [around $150] if depressed flows keep the market focused on the risk of lengthier disruptions,” said the firm. Furthermore, the spread between Brent and WTI oil prices could widen even further if the U.S. imposes export restrictions.
Goldman Sees Oil Flows Recovering, Prices Cooling by Q4
Goldman’s base case is rosier and calls for a steady recovery in oil flows starting in April, with prices cooling down to the $70 range by the fourth quarter.
Brent crude futures (BZ), the international benchmark for oil, have surged 35% to $105 per barrel since the start of the U.S.-Iran war on February 28. Previous supply shocks imply that prices could stay above $100 for quite some time, according to the firm.