Goldman Sachs: Largest oil crisis in history prompted strategic rethink

On March 23, the Goldman Sachs oil team said that this unprecedented oil supply shock is likely to prompt people to re-examine energy risks. "We expect policymakers to re-establish higher levels of strategic reserves after the Strait of Hormuz is reopened, while the market will also add a safety premium to long-term prices." Goldman Sachs said that the impact has not yet fully affected the Western region and is still mainly a localized crisis, which has led to a significant drop in oil shipments and tight supply in the Asian market (Asia usually accounts for 95% of Hormuz's imports). However, commercial crude oil inventories are rising in the United States and OECD countries. Goldman Sachs currently expects the average price of Brent crude oil to be US$110 between March and April, 62% higher than the 2025 average price. It predicts that the average price of WTI crude oil in March will be US$98 and US$105 in April, because the market will take into account U.S. export prices, thereby widening the price difference between U.S. and Bulgarian oil. (Jin Shi)