The price of the world’s primary oil benchmark rose close to the $100 per barrel mark on Tuesday, approaching the key level for the first time in two months after a new wave of hostilities in the Middle East.
Futures on Brent crude (BZ=F) rose roughly 2.3% to trade near $98.50 per barrel after briefly crossing $99 earlier in the session, while those on US benchmark WTI crude (CL=F) picked up 2.7% to trade at $94 per barrel.
Pressuring the oil complex most immediately on Tuesday were reports that Saudi Arabia has halted operations at energy facilities throughout its southern region, per the kingdom’s central press agency, after attacks claimed by the Houthi militant group that has been blockading Saudi oil shipping out of the Red Sea.
The flare-up in conflict in the Middle East, as the war enters its sixth month, combined with a global market that has fallen into deficit as oil transits through the Strait of Hormuz have remained below pre-war levels, prompted Goldman Sachs’ oil strategy desk to raise its price targets for the two key benchmarks on Monday.
The bank’s desk, led by head of oil research Daan Struyven, now sees international Brent and US WTI futures trading at $85 and $80 per barrel, respectively, in December, compared to prior forecasts that were $5 lower. Prices on Brent and WTI will likely trade at $80 and $75, respectively, in 2027, the strategists said.