Goldman Sachs sees current oil crisis as the largest supply shock in history
Investment bank Goldman Sachs has announced that the current oil crisis represents the "largest supply shock in the history of global oil markets." Even if the war in Iran ends soon, it will take at least four months for energy markets to return to any sense of normality.
On Sunday, Goldman analysts raised their April forecast for Brent crude oil prices from $85 to $115 per barrel. They also revised upward their outlooks for 2024 and 2027. The bank believes oil prices could surpass the 2008 record of $147 per barrel.
Additionally, Goldman Sachs increased the probability of a US recession within the next 12 months to 30%, up from 25%. Notably, these forecasts were made before Donald Trump's announcement of a five-day "truce."
Goldman Sachs is a leading global investment bank with a long history, providing a wide range of financial services including analytics and forecasts on global markets, notably the oil sector.
Therefore, the current instability in the oil market carries significant economic implications, potentially impacting the global economy due to rising prices and recession risks in the US. Monitoring further developments in regional conflicts remains crucial as they heavily influence the energy sector.
Further oil price increases and extended market volatility are possible, requiring adaptive strategies from governments and businesses alike.
