(Reuters) – Oil Market Geopolitical Risk Premium Gauges Decrease Slightly, Goldman Sachs Reports
Oil prices stabilized in Asian trading after a sharp decrease last week, with Brent futures trading at $77.72 a barrel, up 0.7%.
Goldman Sachs predicts a potential $10-$20 per barrel increase in Brent prices in case of disruptions in Iranian production.
However, without major disruptions, prices could remain stable this quarter, the bank noted.
The market is currently pricing in a 5% probability of a $20/bbl price jump, according to Goldman Sachs.
Implied volatility is being used to estimate the likelihood of future price changes in the oil market.
