Goldman Sachs Sounds Alarm Over Fresh Threat to Global Oil Supplies

AI Summary

Goldman Sachs has revised its outlook on global oil supplies, warning that renewed hostilities in the Persian Gulf may cause extended supply disruptions. Middle East oil production remains significantly below pre-war levels, with risks of slower recovery due to continued Hormuz Strait disruptions.

A week after it warned that an oil glut is coming, Goldman Sachs has done a U-turn, warning that the renewed hostilities in the Persian Gulf threaten an extended supply disruption. “While Middle Eastern producers have started reopening their shut-in wells over the last month, Hormuz disruptions could slow down the production recovery,” the bank’s commodity analysts said, as quoted by Bloomberg. They added that Middle East oil production remains 10.5 million barrels daily below pre-war levels. “The recent attacks on tankers…