Goldman Misses Commodity Forecasts On China Recovery, US Economy

Goldman Sachs said its forecasts for rises in raw materials did not materialize as planned this year, given the slower-than-expected Chinese recovery post Covid-19 and US recession concerns, the bank said.

• “Prices continue to move against our forecasts. What is the explanation? It is likely the largest commodity destocking the complex has ever witnessed,” analysts said.
• Goldman retains the view commodities to come back surging one recession concerns are over. “The absence of a recession would likely lead to higher oil and commodity prices as well as higher rates, to which equities would likely react poorly,” they said.
• Goldman’s latest forecasts sees Brent crude prices to reach $95/bbl by year-end.