Oil prices rose, supported by escalating tensions in the Middle East due to recent attacks on ships crossing the Red Sea.
Shipping and logistics majors A.P. Moller-Maersk and Hapag-Lloyd stopped their ships from entering the southern entrance of the Red Sea after recent attacks on commercial ships by Houthi forces.
Meanwhile, Russia said it would deepen oil export cuts in December by potentially 50,000 barrels a day or more, Reuters reported, citing Russian news agencies.
Brent crude price is forecast between $70 and $90 a barrel next year on the back of stronger U.S. supply, Goldman Sachs said, cutting its price expectation by $10.
According to the bank, Brent is set to rise to $85 a barrel by June, and average $80-$81 in 2024 and 2025.
The forecast trim came as GS lifted its outlook for U.S. liquids supply growth to 0.9 million barrels a day from 0.5 million barrels a day for 2024.
“While we have adjusted the range, we still look for range-bound prices and only moderate price volatility in 2024,” the bank said.
“Elevated spare capacity to handle tightening shocks should limit upside price moves.”