Goldman Sachs predicts oil prices will double if Red Sea crisis continues?

According to Lanya

Investing.com – On January 6, Daan Struyven, head of oil research at investment bank Goldman Sachs (NYSE: ), said that if shipping routes through the Strait of Hormuz continue to be disrupted by Houthi armed attacks, global crude oil prices will double, according to a CNBC interview information, the Yemeni army.

In fact, after the conflict between Israel and Hamas in Gaza escalated, the Houthis have stopped transporting goods through the Red Sea and continue to attack cargo ships. The force claimed it targeted boats believed to be linked to Israel to express solidarity with the Palestinians. Since December 19, 2023, the Houthis have launched at least 20 missiles in response to the conflict between Israel and Hamas.

“If trade in the Strait of Hormuz is disrupted for a month, oil prices will rise by 20%,” Mr. Struvan noted, adding that if the situation persists, it could eventually lead to a doubling of oil prices.

However, expert Struvan and many analysts in the energy sector believe this scenario is unlikely to happen.

The growing number of attacks has forced global shipping companies to avoid the Red Sea – a key trade artery between Asia and Western countries – and bypass the Cape of Good Hope at the southern tip of Africa. For goods shipped from Asia to Europe or North America, the voyage will be increased by about 6,000 nautical miles and delivery time will be extended to up to a month, causing transportation costs to soar.

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