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Market Chatter: Goldman Sachs Sees Oil Touching $120/Bbl if Middle East Shipping Disruptions Intensify

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Goldman Sachs (GS) sees a price upside of up to $120 per barrel for oil if attacks on ships in the Middle East intensify and lead to increased disruption to flows, Bloomberg reported Monday.

Events of the past few days indicate that the risk of shipping disruptions becoming more widespread and intensifying is an important one, Daan Struyven, Goldman Sachs' co-head of global commodities research, told Bloomberg TV in an interview.

The US-based financial institution, meanwhile, sees prices falling to $80 if regional oil exports return to normal. Brent crude was last trading at $96.36 a barrel.

While Goldman Sachs sees significant upside potential for crude oil prices, it recommends investors take long positions in global natural gas and refined oil products, where supply shocks are larger than in the crude market, Struyven said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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