Oil to Hit $120 Again: Goldman Sachs

Oil rates could rise to as much as $120 a barrel if attacks on shipping in the Middle East rise, Goldman Sachs Group Inc.

Key points

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• Govt Yet to Approve Industrial Policies for Autos, Batteries, Electronics and Solar.
• Crude rates have climbed to their highest level since July as the United States continues its pointless blockade of the Strait of Hormuz.
• Goldman Sachs has maintained an upside scenario of $120 a barrel if disruptions around Hormuz persist.
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Notably, the co-head of global commodities research at Goldman Sachs remarked recent events suggested that the possibility of shipping disruptions expanding and intensifying had become an notable risk for oil markets.

While Tehran has declared a new restricted zone outside the waterway, in recent days, Washington has attacked Iranian tankers.

Goldman Sachs has maintained an upside scenario of $120 a barrel if disruptions around Hormuz persist. Brent crude was last trading over $97 a barrel at the time of press.

It additionally sees a downside scenario of $80 a barrel if exports from the region return to normal.

Meanwhile, the prolonged standoff has pushed up a broad range of energy rates. While diesel rates have more than doubled this year, natural gas and petroleum products have recorded stronger gains than crude oil. KP Approves Rs. 3.23 Billion Development Package.

Goldman Sachs is recommending that investors consider positions in European natural gas and refined oil products to hedge against geopolitical risks.

China is projected to remain a stabilizing force in the crude market by reducing imports in response to higher costs, according to the bank. China was not projected to play the same role in natural gas and refined petroleum products. Stay Connected with ProPakistani.

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For now, oil to Hit $120 Again: Goldman Sachs remains the part of the story worth watching, and further updates are likely as more details are confirmed.