Goldman Sachs raises December Brent oil forecast to $85 amid supply concerns

Goldman Sachs has raised its forecast for December Brent crude to $85 per barrel, amid rising energy prices across the Asia-Pacific region. The revision comes as geopolitical tensions, including the conflict involving Iran and the closure of the Strait of Hormuz, have tightened oil supplies. This has led to elevated prices for liquefied natural gas (LNG) and diesel, reaching yearly highs. Despite the increased energy costs, inflation forecasts are being moderated by subsidies and regulated prices, though inflation trends vary across regions. The current Brent crude market price, fluctuating between $102 and $104 per barrel, suggests that Goldman Sachs’ forecast remains conservative compared to current levels. The bank’s assessment appears to factor in a risk premium due to ongoing Middle East supply disruptions. This outlook is reflected in the broader oil market, where the potential for new all-time highs in crude oil prices is being closely monitored by market participants. Key Takeaways Goldman Sachs’ revision appears to be consistent with the view that geopolitical tensions are influencing oil price forecasts. Current market pricing of Brent crude remains above Goldman’s foreca...