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22 Feb, 2012 - Goldman Sachs bullish on oil
Goldman Sachs bullish on oil
Goldman Sachs Group is forecasting gains in crude oil and Gold, and keeping an “overweight” allocation in raw materials, claiming that the oil price remains vulnerable from supply disruptions in Iran and as the world economic recovery is gaining momentum.
Goldman Sachs has kept its predictions for Brent and Gold at $127.50 a barrel and $1,940 an ounce. They are today trading at $121.23 and $1,755.95 respectively.
“We look to fundamental drivers for further expected gains in 2012, which we believe will be centred in the oil complex”, the bank said in its report.
Meanwhile, oil climbed to 9-month high in New York yesterday, after Greece was granted its second €130 billion bailout and Gold advanced 12% this year alone. As measured by the Standard & Poor’s GSCI index of 24 raw materials, commodities advanced 8.5% in 2012, to the highest level in 6 months.
Notably, while Morgan Stanley is also bullish on Gold, it expects oil prices to decline until June, as supply recovers and demand slows.
If you wish to learn more about investing in commodities, speak to a deVere Financial Adviser today.
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