Underweight on commodities – Goldman Sachs

FXStreet (Delhi) – Research Team at Goldman Sachs, remains underweight commodities due to near-term downside potential, in particular for oil prices.

Key Quotes

“As demand weakness over 2015 has compounded the oversupply associated with transitioning into a new exploitation phase of the commodity supply cycle. In the near term, we see risk of reaching storage capacity in the oil market – which could force spot prices to cash costs of around $20/bbl. But over a longer horizon, we remain more optimistic and see a higher sequential allocation to commodities in or by 2017, in line with our economists’ more upbeat 2016-18 GDP forecasts.”

Research Team at Goldman Sachs, remains underweight commodities due to near-term downside potential, in particular for oil prices.

(Market News Provided by FXstreet)