EBC Markets Briefing | Crude prices on solid footing amid deep supply concerns

Oil prices stayed firm as Iran-US tensions fueled supply risks. Goldman Sachs warned of a potential $120 surge, while OPEC output cuts supported Brent near $100.

Oil prices remained steady on Thursday as market participants anticipated more severe supply shocks after Iran and the US executed their most intensive maritime strikes since the outbreak of their six-month conflict.

Trump acknowledged on Wednesday that the high energy prices driven by the ongoing conflict with Iran are unlikely to drop until after the midterm elections, which are roughly two months away.

The US military reported that its forces successfully destroyed 10 Iranian oil tankers over the past week, as Revolutionary Guard claimed responsibility for a series of retaliatory strikes.

Goldman Sachs warns that escalating attacks in the Persian Gulf and Red Sea could drive oil prices beyond $120, further intensifying the severe fuel inflation American consumers have endured.

The EIA now expects Brent crude oil prices to average ​about $91 a barrel this year as global ​oil inventories have fallen by about 400 million barrels in 2026 and are set to drop further ​through the end of this year.

According to a Bloomberg survey, OPEC's crude oil output dropped sharply in August, ending a two-month rebound. Saudi Arabia scaled back production due to security threats impacting its twin export routes.

EBC Financial Group analyst says that Brent crude showed a clear, ascending triangle pattern. The immediate momentum might be exhausting around the $100 level, so a retreat towards below $96 is likely.

Asset Recap

As of market close on 8 September, among EBC major products, Meta shares led gains after the company debuted Muse, an AI assistant. Wall Street analysts are bullish on the standalone chatbot.

Pinterest shares reached their lowest intraday level since late May, after Chief Executive Officer Bill Ready stuck a cautious tone regarding near-term headwinds and a refusal to update financial figures.

German equities tumbled sharply, joining a broader pan-European market retreat as an intensifying conflict in the Middle East drove crude prices back above a crucial milestone.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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