Goldman Sachs is recommending investors add to their commodities exposure for 2024, forecasting a 21 per cent return in the oil-heavy S&P GSCI Commodity Index over the coming year. The end of both central bank monetary tightening and recession fears is a big reason for the bullish view.
Goldman Sachs is recommending investors add to their commodities exposure for 2024, forecasting a 21 per cent return in the oil-heavy S&P GSCI Commodity Index over the coming year. The end of both central bank monetary tightening and recession fears is a big reason for the bullish view. Goldman Sachs ’ economists believe the negative effects of monetary tightening on global GDP, and thus commodity demand , are easing.
Global manufacturers have been running through existing inventories rather than producing through much of 2023, limiting commodity demand. Goldman’s head of Americas natural resources equity research, Samantha Dart, believes this process will end in early 2024. Goldman Sachs expects the OPEC+ nations to maintain production curbs through next year, supporting a Brent crude price of US$92 on average. A lack of refining capacity will keep supplies of gasoline and diesel low relative to demand, also sustaining a higher commodity price
Goldman Sachs Commodities Forecast Return Oil S&P GSCI Commodity Index Central Bank Monetary Tightening Recession Fears Global GDP Commodity Demand Inventories OPEC+ Production Curbs Brent Crude Refining Capacity Gasoline Diesel Commodity Price
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