Goldman Sachs Warns Brent Oil Prices May Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Source: CNBC
- Price Forecast: Goldman Sachs analysts warn that Brent oil prices could exceed the 2008 record high of $147.50 per barrel if crude flows remain depressed due to the U.S.-Iran conflict, with a potential increase of $42 by the end of 2027, indicating the market's heightened sensitivity to supply disruptions.
- Liquidity Risks: Analysts suggest that if oil flows through the Strait of Hormuz remain low for 60 days and Middle Eastern production drops by 2 million barrels per day for an extended period after the Strait reopens, Brent prices could surge to this level, reflecting the profound impact of geopolitical tensions on the market.
- Recent Price Volatility: Brent was trading around $108 per barrel on Friday, having surged approximately 49% since the onset of the war, highlighting the market's rapid response to supply risks, especially following recent attacks on energy infrastructure by Israel and Iran.
- Long-term Outlook: While Goldman expects Brent prices to moderate to the $70s by the end of 2026, historical data shows that oil production has averaged a 42% drop after the five largest supply shocks, indicating that the market may face prolonged high oil price risks.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 860.210
Low
604.00
Averages
951.45
High
1100
Current: 860.210
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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