INSUBCONTINENT EXCLUSIVE:
By Pratish NarayananThe case for owning commodities has rarely been stronger, according to Goldman Sachs Group Inc.
With raw materials
They reiterated a view that commodities will yield returns of 10 percent over the next 12 months, according to an April 12 note.
The
Bloomberg Commodity Index is up more than 2.5 percent this week, the most in two months
Another raw materials gauge, the SP GSCI Index, has rallied over 5 percent this week to levels last seen in 2014.
The gains are being driven
by crude, which is set for its best weekly jump since July, and aluminum, poised for its strongest rally since 1987
Oil investors are rattled by the potential for Middle East supply disruptions in the wake of the U.S
threatening to bomb Russian ally Syria, Saudi Arabia shooting down missiles fired by rebels in Yemen, and rising concern that America would
reimpose sanctions on Iran and curb its exports.
In the aluminum market, U.S
sanctions on Russian producer United Co
increasing inflationary risks, a positive carry and the potential for oil supply disruptions in the Middle East, the strategic case for
West Texas Intermediate futures are up 8.6 percent on the week at $67.38 a barrel in New York as the escalating tensions have taken investor
Arabia by pro-Iranian Houthi rebels in Yemen and the prospect of U.S
retaliation against Syrian President Bashar al-Assad -- whose forces are backed by both Russia and Iran -- for a suspected chemical weapons
will pull out of a deal between Iran and global powers that eased sanctions on the OPEC nation in exchange for curbs on its nuclear program
The appointment of John Bolton as National Security Advisor and Mike Pompeo as Secretary of State, both vocal Iran hawks, has significantly
refiners may cut imports from Iran, given their exposure to the U.S., either through assets or product trade flows, according to the bank
chain are rushing to assess the risks of handling metal from Rusal, a company that Goldman said represents 6 percent of global output
The moves will drive significant disruption in the near term, according to the bank, which flagged upside risks to its end-year forecast of
percent this week to $2,320 a ton after surging to a six-year high on Thursday
