Goldman Sachs has reversed its bearish call on commodities, urging investors to buy as it expects oil will surge to $130 a barrel in the next 12 months.
The US investment banking giant is advising clients to purchase oil after the commodity saw its sharpest one-day fall on record on 5 May, dropping $12 a barrel in a day, the Financial Times reports. Goldman Sachs recommended a month ago investors should reduce commodity exposure, saying oil prices had moved ahead of where fundamentals suggested they should be. However, the bank has now called the bottom of the market, saying in a note to clients the correction in early May presents a good entry point to take long positions in oil and commodities. Goldman has lifted its oil forecast...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
