Listing out other scenarios dependent on the actual duration of the outage, analysts at the bank said a very short, or about week-long outage, could push prices up by US$3-US$5 a barrel, while a disruption of two to six weeks would result in a US$5 to US$14 per barrel move.
BENGALURU: Goldman Sachs said an outage of more than six weeks due to drone attacks on Saudi Arabian oil facilities over the weekend could cause Brent prices to rally above US$75 a barrel, although the magnitude of the impact was uncertain at this point.
A disruption over such a duration at current levels would not only push up Brent prices, but also result in the release from Strategic Petroleum Reserves “large enough to balance such a deficit for several months and cap prices at such levels, ” the Wall Street bank said in a note last Sunday.
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