Major banks raise oil forecasts amid Gulf shipping disruptions

Major banks have raised their oil price forecasts amid ongoing disruptions in Gulf shipping, as reported by @DeItaone. The revisions come as the Strait of Hormuz faces significant shipping slowdown, impacting Brent crude and West Texas Intermediate (WTI) benchmarks. Goldman Sachs, among others, has adjusted its forecast for late 2026 and beyond, citing expectations that Middle East shipping disruptions will persist into next year. The situation has led to a sharp decline in traffic through the Strait, with reports of vessel movements falling dramatically. Markets have responded to these developments, with the probability of crude oil reaching a new all-time high by the end of the year seeing an uptick. Current market pricing suggests a 14% likelihood of such an event occurring by December 31. The ongoing disruptions and revised forecasts from major financial institutions appear to be driving this sentiment. Additionally, other banks like Citi, UBS, Barclays, and J.P. Morgan have also revised their oil outlooks upward in response to the Gulf disruptions. Key Takeaways Market activity suggests participants view the ongoing Gulf disruptions as consistent with a scenario where crude oi...