Goldman Sachs: Geopolitical Risk Could Send Oil Prices Even Higher

The two-day oil price rally on Friday and Monday following the latest U.S. sanctions on Russia’s oil exports goes to show that geopolitics will continue to play a key role in oil price action and market balances this year. The price rally, which pushed oil to four-month highs, could just be a knee-jerk reaction until tanker supply chains adapt to the latest sanctions move. Nevertheless, these geopolitical forces cannot be ignored by market participants, and speculators are awaiting the next wave of geopolitical decisions by the incoming Trump…