Goldman Sachs: Oil Prices Soaring, Global Growth at Risk

0:00This is Cory, here with your quick two-minute update from Durham News Today. Goldman Sachs has raised its oil price forecast for late 2026, signaling a longer-than-expected supply crisis. The bank now predicts Brent Crude at $71 per barrel and West Texas Intermediate at $67 in the fourth quarter, up from $66.62 before. Meanwhile, the revision stems from a bigger disruption in the Strait of Hormuz, where flows are down to 10% of normal for 21 days, followed by a 30-day recovery, far worse than a prior 10-day estimate. Career prices reflect the strain, with Bret near $98.00 in WTI at $93 a barrel. Other major banks are following suit, like HSBC lifting its full-year Brent Outlook to $80 from $65 and Barclays warning of. Possible $120 or even $150 if tensions drag on. Energy stocks have surged, with Chevron of nearly 30% a year to date and Exxon over 28%.

1:05The fallout hits broader markets, as higher oil could fuel inflation and delay federal reserve rate cuts, with Goldman seeing just a couple this year. Instead of more, transportation costs are rising and everyday expenses fill the pinch. According to the International Energy Agency, this is the largest supply shock in history, and officials worn inventories could run low without. Emergency releases from strategic reserves, the situation shows no quick fix, keeping pressure on global growth. D&N is brought to you by our sponsor. What is cooler than cool? A pillow that plays your sound. S-O-L-I. SoleyPillo.com