Goldman Sachs Forecasts Record Oil Prices Above $147 Amid Supply Risks

Goldman Sachs has issued a new forecast stating that global oil prices are likely to surpass the all-time record of $147 per barrel due to severe supply disruptions in the Middle East. The bank highlighted that the closure of the Strait of Hormuz and attacks on energy infrastructure in Qatar and the UAE have created a massive supply deficit. However, prominent economists Paul Krugman and David Brooks argue that oil prices are now nearing a peak. They attribute this potential ceiling to 'demand destruction,' a phenomenon where excessively high prices force a significant reduction in global consumption. Reports suggest these downward pressures on demand were already evident prior to recent political statements regarding Iran. Consequently, the market is now caught between Goldman’s supply-driven bullishness and growing concerns over a price-induced slowdown in demand.

Sources:ft.cominvesting.comoilprice.comthestreet.commarketwatch.commarketwatch.combinance.cominvestinglive.com247wallst.com