Categories AlphaGraphs, Finance, U.S. Markets News

Goldman Sachs sees good time for commodities post G20 summit

According to Goldman Sachs, oil, gas and base commodities will position themselves as attractive investments as it forecasted a 17% returns in the coming months. The finance giant, in a report, also indicated that this week’s G20 meetup at Buenos Aires could be a turning point.

With crude oil sinking due to speculations of oversupply, metals falling due to slow growth and ripples of the impending trade war between the US and China all contributing to a disastrous November for commodities so far, analysts are of the view that some sort of resolution between the two countries is in store at the summit.

Commodities depend on G20 Summit
US President Donald J. Trump participates in a business event with President Xi Jinping at the Great Hall of the People, Thursday, November 9, 2017, in Beijing, People’s Republic of China. (Official White House Photo by Shealah Craighead)

“Many of the political uncertainties weighing on commodity markets have a significant chance of being addressed in Buenos Aires,” Goldman said in the report. Analysts expect an improvement on the China-US trade standoff and greater clarity on a potential OPEC supply cut.

 

S&P GSCI Index Performance

 

Last week, oil prices increased for the fourth session in a row on Nov 19 on reports of Saudi Arabia prospectively pushing Russia and fellow OPEC countries to cut supply by the end of the year.

Before the US markets began trading last week, Brent crude futures went up 24 cents to $67/barrel and US futures jumped 38 cents to $56.84.

Saudi Arabia is also said to be adding pressure on The Organization of the Petroleum Exporting Countries to ramp down output by 1 million to 1.4 million bpd (barrels per day) in a bid to reduce unused fuel.

According to Russian Energy Minister Alexander Novak, non-OPEC member Russia looks to sign an agreement with the group, of which the details are expected after the Dec. 6 Vienna OPEC meet.

Brent had peaked in early October at $86.74, but the record output from the United States, Russia and Saudi Arabia has hit demand.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top