Business & Finance
Goldman Sachs warns crude oil prices could surpass $120 amid Middle East conflicts
CBS News reports that escalating Middle East conflict could drive oil over $120, though baseline forecasts expect prices to moderate.
The short version
- Goldman Sachs warned that intensifying clashes in the Persian Gulf and Red Sea could push crude oil prices above $120 per barrel.[CBS News]
- Brent crude hovered near $100 per barrel, while elevated fuel costs have already cost American consumers an estimated additional $100 billion since late February.[CBS News]
- Goldman's baseline forecast expects Brent to ease to $85 per barrel by year's end, and Treasury Secretary Scott Bessent projected eventual declines to $40 or $50 as supply expands.[CBS News]
Key facts
- Goldman Sachs projected that expanding hostilities in the Red Sea and Persian Gulf could drive global oil costs beyond $120 a barrel.[CBS News]
- Brent crude traded close to $100 a barrel, peaking at $99.46 before retreating to $97.85.[CBS News]
- A Brown University tracker estimated that higher fuel expenses cost U.S. consumers an extra $100 billion between February 28 and September 8.[CBS News]
- According to AAA figures, diesel prices hit a record high of $5.90 per gallon on Labor Day.[CBS News]
- Goldman's central scenario projects Brent crude to decline to $85 per barrel by the end of the year, with West Texas Intermediate settling near $80.[CBS News]
What remains uncertain
- Long-term oil trajectories remain disputed, with Goldman projecting an optimistic $60 range by 2027 contingent on Gulf output increases, while Treasury Secretary Scott Bessent predicted prices could fall to $40 or $50 as supplies surge.[CBS News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.