Goldman Sachs analyst Mark Ozerov expects the recent upside momentum in oil to continue for the medium term. Metals are expected to continue to decline as the physical market re-balancing in metals remains inferior relative to that in the oil market.
That divergence in the those two markets is expected to continue as the Chinese shift toward more consumption and away from investment, which should drive investors into more Operating Expense focused commodities like copper and away from Capital Expense focus commodities like oil, says Ozerov.
The divergence in metals and commodities is expected to be the key focus for Emerging markets in the medium term.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
