Goldman Sachs warns oil prices could hit $120 as U.S. fuel costs surge
Summary
Goldman Sachs warns that ongoing attacks in the Persian Gulf and Red Sea could push global oil prices over $120 a barrel. This would increase fuel costs for Americans, which have already risen sharply due to the war in Iran and related conflicts.Key Facts
- Goldman Sachs predicts oil prices could rise above $120 per barrel if fighting in the Middle East worsens.
- Brent crude, the international oil price benchmark, is currently near $100 a barrel, up from about $72 two months ago.
- Attacks on Iranian oil tankers and Saudi oil facilities have increased concerns about oil supply.
- American consumers have spent an extra $100 billion on fuel since the Iran war began in late February 2024.
- Diesel fuel prices reached a record $5.90 per gallon on Labor Day, affecting transportation and goods costs.
- Goldman’s base forecast expects prices to drop to $85 per barrel by the end of 2024 if conditions improve.
- U.S. Treasury Secretary Scott Bessent said oil prices may fall below pre-war levels when the conflict ends.
- Markets now see a higher chance that Brent crude will stay above $100 per barrel through early 2027.
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