A Goldman Sachs note with their immediate assessment of the oil price impact of the terrorist attacks on Israel.
GS begin with the caveat:
- Recognizing the elevated uncertainty and incomplete information at this early stage
Which seems a fair enough point. And then go on:
- we note that there has been no impact to current global oil production,
- and that we see as unlikely any immediate large effect on the near-term supply-demand balance and near-term oil inventories, which tend to be the main fundamental driver of oil prices.
GS added that the attacks reduce the likelihood of normalization of the country's relations with Saudi Arabia, and the associated boost to Saudi production over time.
GS continues to forecast Brent to US$100 by June 2024.
Oil update:
