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Goldman Says Brent Could Top $120 If Hormuz Disruptions Persist

energy_supply_shockMiddle EastBloomberg21 Jul, 03:22 UTC

Context

Brent crude could rally to more than $120 a barrel by the fourth quarter if disruptions to flows through the Strait of Hormuz persist, according to Goldman Sachs Group Inc., although that’s not the bank’s base case.

What it means

Goldman Sachs's $120 Brent scenario is a conditional, tail-risk forecast — not a new supply event. The Strait of Hormuz disruption risk has been an open, actively covered situation for 47 days, and Brent's upside has already been called in prior signals. A bank publishing a stress-case price target adds no new supply-side information and is unlikely to move markets beyond what is already reflected in current prices and positioning.

Causal chain

No clear market signal

How to read a signal
Severity
the event's market impact, 1–5
Direction
/ likely price move for the asset
Exp. move
the size of the abnormal move we'd expect if the call plays out — not a claim a move will happen:
Ssmall<1%
Mmoderate1–5%
Llarge>5%
Most flagged events don't move beyond noise; those count against us (see the track record).
Timeframe
the window we measure over:
1dshort
5dmedium
21dlong
Conviction
how well-established the directional call is (textbook → speculative) — not a guaranteed outcome:
low
average
strong

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Not investment advice · for informational purposes only. Generated 21 Jul, 03:45 UTC