Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War, Projects Brent Crossing $100
Portfolio Pulse from Piero Cingari
The escalating conflict between Israel and Hamas is causing a surge in crude oil prices, with WTI crude oil trading near $85 per barrel. Goldman Sachs predicts that the conflict could disrupt factors that might have eased the tight supply condition in the oil market. The firm anticipates that Saudi Arabia will gradually scale back the extra 1mb/d production cut by the first quarter of 2025, which could further boost crude oil prices. The conflict is also expected to impact projections for Iranian oil production. ETFs that could be affected by the conflict include United States Oil Fund (USO), iShares MSCI Saudi Arabia ETF (KSA), VanEck Israel ETF (ISRA), and ARK Israel Innovative Technology ETF (IZRL).
October 09, 2023 | 12:56 pm
News sentiment analysis
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NEGATIVE IMPACT
The VanEck Israel ETF (ISRA) could be directly affected by the ongoing conflict in the region.
The ISRA ETF focuses on Israeli stocks, which are likely to be impacted by the ongoing conflict.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The ARK Israel Innovative Technology ETF (IZRL) may experience volatility depending on how the conflict affects the Israeli tech sector and broader market sentiment.
The IZRL ETF invests in Israeli technology companies, which could be affected by the conflict.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The iShares MSCI Saudi Arabia ETF (KSA) may see volatility due to the potential impact on Saudi-Israeli relations and their significance in the oil market.
The KSA ETF tracks the performance of Saudi Arabian stocks, which could be affected by the geopolitical situation.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The United States Oil Fund (USO) is likely to be influenced by fluctuations in crude oil prices resulting from the Middle East conflict.
The USO ETF tracks the price movements of WTI crude oil, which is currently experiencing a surge due to the conflict.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100