Oil News: Crude Oil Analysis: Goldman Raises Outlook as Hormuz Inventory Risk Grows
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Key Points:
- Hormuz is operating at minimal capacity with 10 to 13 million barrels per day cut off from global crude oil markets.
- June WTI crude oil futures jumped nearly 3% Monday as collapsed Iran talks removed any near-term supply relief.
- Goldman Sachs raised its year-end Brent crude oil target but warned of disorderly price spikes if inventories run critically low.
June WTI Crude Oil Futures
Iran talks fell apart over the weekend and June WTI crude oil hit a three-week high before Monday’s open. That’s not a coincidence. Hormuz tanker traffic is nearly stopped, Goldman Sachs just moved its price target higher, and there is no diplomatic off-ramp in sight. I’ve been watching this supply story build for weeks and Monday felt like the market finally accepting that this disruption isn’t going away. Keep reading for what the charts are saying and where this trade goes from here.