Goldman Sachs Warns Shipping Costs May Push Brent Higher
Goldman Sachs's forecasts indicate that rising crude oil shipping costs, driven by conflicts in the Middle East, are increasing the likelihood of higher Brent prices. The average costs have exceeded $20 per barrel, with a particular surge through the Gulf routes to over $35. The bank is concerned that tensions in the Strait of Hormuz remain the primary driver of these costs. It expects Brent prices to stay around $90 per barrel by the end of 2023, with the potential for higher prices if security threats persist. Meanwhile, the market is experiencing widening spreads among different types of oil and declining refinery profits due to rising transportation costs.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)