The price of the world’s main oil benchmark rose near $100 a barrel on Tuesday, approaching the key level for the first time in two months after a new wave of hostilities in the Middle East. Brent crude oil futures (BZ=F) rose about 2.3% to trade near $98.50 a barrel after briefly crossing $99 a barrel earlier in the session, while US benchmark WTI crude oil futures (CL=F) rose 2.7% to trade at $94 a barrel. The most immediate pressure on the oil complex on Tuesday came from reports that Saudi Arabia had halted operations at energy facilities across its southern region, according to the kingdom’s central press agency, after attacks claimed by the Houthi militant group that has been blocking the shipment of Saudi oil from the Red Sea. The escalation of 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 remain below pre-war levels, led Goldman Sachs’ oil strategy desk to raise its price targets for the two key benchmarks on Monday. The bank’s desk, led by oil research chief Daan Struyven, now expects international Brent and US WTI futures to trade at $85 and $80 a barrel, respectively, in December, compared with earlier forecasts of $5 lower. Brent and WTI prices will likely trade at $80 and $75, respectively, in 2027, strategists said. Read more.
