News Sharing
For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields
Receiver*
Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com
Your email address*
 Content Sharing
<Research>G Sachs Estimates Real-time Risk Premium of USD18/ bbl for Oil Prices
The Strait of Hormuz, which typically carries one-fifth of the world's crude oil and liquefied natural gas (LNG) supply, appears to have been gravely disrupted, Goldman Sachs s...
Reset
Send
The window will close in 5 seconds
<Research>G Sachs Estimates Real-time Risk Premium of USD18/ bbl for Oil Prices
Close
Recommend
2
Positive
2
Negative
1
 
SHORT SELL
 
STOCK INFO
aacat by AASTOCKS
Open a new trading account to get NVDA share!

The Strait of Hormuz, which typically carries one-fifth of the world's crude oil and liquefied natural gas (LNG) supply, appears to have been gravely disrupted, Goldman Sachs said in its report. Numerous shippers, oil producers, and insurers have adopted a cautious wait-and-see mode with reports of multiple vessel damages.

Goldman Sachs is assessing the upside risks to energy prices due to developments in the Middle East. At this juncture, the base case energy price forecast remains unchanged, assuming no prolonged supply disruptions.

Based on a 15% leap in retail oil prices over the weekend, Goldman Sachs estimated a real-time risk premium of USD18/ bbl in oil prices. This is roughly equivalent to the estimate of the fair value effect of a six-week full halt in Strait of Hormuz flows.

If only 50% of the flow is disrupted for a month, this estimated impact would moderate to an increase of USD4/ bbl. However, if the market demands a premium for more prolonged supply disruption risks, oil prices could leapfrog.

AASTOCKS Financial News
Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.