Summary
- Goldman Sachs warned that heightened tensions in the Middle East could cause international crude oil and natural gas prices to surge sharply.
- Goldman Sachs projected that Brent Crude prices could rise to USD 110 per barrel in the event of supply disruptions.
- The report indicated that continuous disruptions in the Strait of Hormuz could cause natural gas prices to soar to €100 per MWh.
Goldman Sachs has warned that heightened geopolitical tensions in the Middle East may lead to further increases in international oil and natural gas prices.
According to Bloomberg on the 23rd (local time), Goldman Sachs stated in a recent report, "The volume of crude oil passing through the Strait of Hormuz has been halved," and projected, "If supply remains more than 10% below the current level for the next 11 months, Brent Crude could surge to USD 110 per barrel." Additionally, Daan Struyven, head of oil research at Goldman Sachs, said, "If Iran's daily crude oil production drops to 1.75 million barrels, Brent Crude could jump to USD 90."
The natural gas market is also at risk. The benchmark price for the European natural gas market, TTF, Title Transfer Facility, is said to have the potential to rise to €74 per MWh or USD 25 per million British thermal units (MMBtu). This is comparable to the level that impacted demand during the 2022 European energy crisis.
The report stated, "The Strait of Hormuz is a key energy pathway," and warned, "If this pathway faces continued disruptions, natural gas prices could soar to €100 per MWh."
Heecheol Yang
heecheol@bloomingbit.ioHello, I'm a reporter at bloomingbit
