Goldman Sachs Predicts Significant Surge in Oil and Gas Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy GS?
Source: stocktwits
- Price Forecast Increase: Goldman Sachs raised its Q2 2026 average price forecast for Brent crude by $10 to $76 per barrel and WTI by $9 to $71, reflecting expectations that reduced oil flows through the Strait of Hormuz will sharply lower OECD inventories and curb Middle Eastern production.
- Strait of Hormuz Impact: If the Strait remains closed, oil prices could rise by about $15 per barrel, while fully utilizing the estimated spare pipeline capacity of four million barrels per day would ease the impact to around $12 per barrel, highlighting the direct influence of geopolitical risks on oil prices.
- Gas Price Surge: Should LNG flows be fully halted for a month, Dutch TTF gas prices could climb toward €74 per megawatt-hour, with disruptions lasting over two months potentially pushing prices above €100 MWh, indicating the market's high sensitivity to supply interruptions.
- Increased Market Volatility: Amid escalating tensions in the Strait of Hormuz, spot Brent crude prices have surged over 16% in the past three sessions, currently at $83.4 per barrel, reflecting traders' concerns over future supply risks and heightened demand for risk premiums.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 862.580
Low
604.00
Averages
951.45
High
1100
Current: 862.580
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Valuation Risk Warning: Oppenheimer warns that current market valuations are above their 20-year historical averages; however, he believes the likelihood of a deep and prolonged downturn is relatively low, providing a safer entry point for investors.
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- Competitive Advantage: Despite Ross Stores' better-than-expected quarterly results, TJX's scale and negotiating power provide a clear advantage in inventory acquisition, with the CEO indicating a slowdown in purchasing to manage market supply, reflecting confidence in future growth.
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