Goldman Sachs stated that there is little confidence that US security measures to protect oil and gas tankers in the Strait of Hormuz will resolve the situation, warning that oil prices could rise above $100 per barrel if disruptions persist.
Samantha Dart, Co-Head of Global Commodities Research at the bank, told Bloomberg that there are questions about the practical feasibility of naval escorts for vessels given the sheer number of tankers.
She added that the market also has deep concerns over how effectively a convoy could defend against drone attacks.
If disruptions in the strait continue for five weeks, Brent crude prices could exceed $100 per barrel, Dart noted.
She also explained that the bank’s forecasts published this week, which project Brent crude at $76 per barrel in Q2, assume extremely low flows through the strait for about five days, followed by a gradual recovery over a month.
Goldman Sachs stated that there is little confidence that US security measures to protect oil and gas tankers in the Strait of Hormuz will resolve the situation, warning that oil prices could rise above $100 per barrel if disruptions persist.
Samantha Dart, Co-Head of Global Commodities Research at the bank, told Bloomberg that there are questions about the practical feasibility of naval escorts for vessels given the sheer number of tankers.
She added that the market also has deep concerns over how effectively a convoy could defend against drone attacks.
If disruptions in the strait continue for five weeks, Brent crude prices could exceed $100 per barrel, Dart noted.
She also explained that the bank’s forecasts published this week, which project Brent crude at $76 per barrel in Q2, assume extremely low flows through the strait for about five days, followed by a gradual recovery over a month.
