NEW DELHI, April 27 : The global crude oil prices on Monday surged by 2pc amid renewed tensions between the US and Iran. The benchmark ICE Brent crude futures contract rose nearly 2pc to USD 107.28 per barrel, while WTI Intermediate crude gained 1.5 per cent to USD 95.78 per barrel.
The spike comes as ceasefire negotiations between the US and Iran reached a standstill, raising concerns over supply disruptions through the Strait of Hormuz.
Goldman Sachs has raised its oil price forecasts for the fourth quarter to USD 90 a barrel for Brent crude and USD 83 for WTI citing reduced output from the Middle East.
The uncertainty over the US and Iran talks intensified after the US President Donald Trump cancelled his trip to Pakistan by his envoys, Steve Witkoff and Jared Kushner, after Iranian Minister of Foreign Affairs Abbas Araghchi departed Islamabad before any direct engagement could take place between the sides.
Araghchi has travelled between Oman, Pakistan and Russia to sustain dialogue and explore de-escalation pathways.
IEA has noted that global oil supply plummeted by over 10 million barrels per day (mb/d) last month as a result of the ongoing naval blockade and infrastructure damage in the region.
Goldman Sachs projected that Brent crude, the international benchmark, will trade at about USD 90 a barrel in the last three months of this year, up from an earlier projection of USD 80.
It expected US oil to trade at about USD 83 a barrel in the fourth quarter, up from its previous USD 75 forecast. Brent was up more than 1 per cent on Monday, exceeding USD 106 a barrel.
Goldman further noted there would be long-term “scarring” of Gulf production capacity of about 500,000 barrels a day, primarily due to losses in Iraq.
(UNI)
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