US renews missile strikes against Houthi rebels
March 18, 2025
Crude oil prices traded higher yesterday on the news over the weekend that the US launched missile strikes against Iran backed Houthi rebels in Yemen, which is raising the possibility of oil supply disruptions in the Middle East. Also supportive of prices was optimism of additional stimulus in China after announcing a special action plan to increase income and encourage spending and population growth.
US President Donald Trump will speak to Russian President Vladimir Putin in an attempt to convince him to accept a ceasefire and work toward a more permanent end to the three-year conflict. This situation may put a lid on crude price as the assumption is that President Trump may ease sanction on oil as part of this deal to get Russia to agree to a ceasefire and negotiate a peace deal.
Israel airstrikes hit Gaza, killing more than 400 people, threatening a collapse of the two-month ceasefire. This news rallied crude oil earlier this morning and it is currently trading up $.79 cents at $68.36 per barrel.
Goldman Sachs lowered its December 2025 and average 2026 forecast for Brent and WTI crude oi prices, citing slower oil demand growth prospects and expectations of higher OPEC+ supply. The bank expects Brent crude at $71 per barrel in December, down $5 from its previous forecast, and sees WTI at $67 per barrel. It also cut its 2026 average Brent forecast to $68 per barrel from $73 per barrel, and WTI to $64 per barrel from $68 per barrel.