Goldman Sachs analysts have said that higher oil prices might last through 2027, as Brent crude increased to $110.2 a barrel on Friday.
Brent crude increased by 1.4% while WTI, the US benchmark, rose by 0.3% to $95.9.
“The persistence of several prior large supply shocks underscores the risk that oil prices may stay above $100 for longer in risk scenarios with lengthier disruptions and large persistent supply losses,” the Goldman analysts wrote.
The International Energy Agency has stated that “The war in the Middle East is creating the largest supply disruption in the history of the global oil market.”
Most of the disruption originates from the closure of the Strait of Hormuz.
Last week, Nissan CEO Ivan Espinosa stated that the conflict was affecting the distribution of Nissan products throughout the Middle East, which is Nissan’s second-largest export market. On Thursday, Toyota CEO Koji Sato supported this view, describing the closure of Hormuz as a significant obstacle for shipping its vehicles.
The news comes as the Trump administration pushes ahead with about $23 billion in weapons sales to three Gulf countries, aiming to strengthen their defenses as the Middle East conflict continues to escalate with no clear end in sight.
The provisional arms sale, intended to strengthen the Gulf nations’ military forces, occurred as Iran increased attacks on multiple energy infrastructure sites in the region.
By CEO NA Editorial Staff
