Despite the Bloomberg Commodities Index decline of 3.4% last week, the biggest drop since July, Goldman Sachs maintains confidence in raw materials. According to a March 12 report, analysts expect tightening supply will see higher prices return later this year. Barclays PLC also said in a note this week that they are bullish on crude oil through 2020. Goldman analysts suspect that the sell-off last week was driven by misplaced concern over China, despite rising demand coming from the country and signs that underlying market fundamentals have been strengthening.
A crude oil tanker unloads at Qingdao Port, Shandong province. Photo: Reuters/Stringer
Still confident on Commodities: Goldman Sachs
Analysts see prices recovering later this year despite last week’s sell-off