Goldman Sachs: Gulf oil flow recovery uncertain amid renewed attacks
Goldman Sachs Group, Inc. GS | 0.00 |
July 15 (Reuters) - Renewed disruptions to oil exports from the Gulf could continue to put upward pressure on prices in the near term, Goldman Sachs said in a note released on Tuesday, adding that the next phase of flow recovery remains uncertain and could be slower than the initial recovery even after geopolitical tensions subside.
Goldman Sachs estimates that Gulf exports recovered to more than 80 percent of pre-war levels after the signing of a memorandum of understanding between the United States and Iran in June, but fell back below 50 percent, or about 11 million barrels per day, last week following new attacks on tankers in the Strait of Hormuz.
Oil prices rose for a third straight session on Wednesday as President Donald Trump reimposed a naval blockade on all Iranian ports and Iran launched strikes targeting U.S. infrastructure in the region.
By 0421 GMT, Brent crude had risen 0.9% to $85.52 a barrel, and West Texas Intermediate crude had gained 0.6% to $79.86 a barrel. Both benchmarks hit their highest levels in a month on Tuesday.
Goldman Sachs highlighted the threats surrounding its forecasts for Brent crude prices at $80 for the fourth quarter of 2026 and $75 for 2027.
The bank said Brent crude could exceed $110 in the final quarter of this year if the recovery in exports from the Gulf states continues to slow.
He noted that prices could fall to $60 by the end of the year if regional tensions ease and production recovers at a faster pace than expected.
Goldman Sachs warned that any further recovery in Gulf exports is likely to be uneven due to the risk of further attacks on tankers and energy infrastructure, and estimated that the reimposed US embargo on Iranian ports could reduce Iranian exports by 1.5 million to 2 million barrels per day.
Goldman Sachs explained that the estimated net loss for Gulf flows doubled during the past week to reach 13.4 million barrels per day, which means that the market needs more adjustment mechanisms to mitigate the repercussions.
Goldman Sachs added that China's crude oil imports, which fell by five million barrels per day year-on-year in June, may have reached their lowest point.
