Goldman Sachs think oil investors are up for a challenge

Published: 30 January, 2015 15:06

Brent crude oil crisisCommodity trading online may take one of the largest hits in recent times according to Goldman Sachs and other reputable analysts.

Driven partially by the massive collapse in oil prices over the past month, analysts have cut their forecasts once again from neutral to underweight.

The sectors which are expected to be affected include energy, metals and livestock.

While some feel that a cut in OPEC oil production may serve to boost prices slightly, a slowdown in demand may hint at a more protracted downturn for the first half of 2015.

A Balanced Return?

Of course, part of this decline is seen as being the result of deflation across much of the overall commodities sector. It is therefore important for those involved with online trading to develop a working strategy.

While some are adopting a “watch-and-wait” position, others are seeing sectors such as oil and gold as particularly appealing from a long-term stance. In fact, some traders anticipate a balance returning during the final months of 2015 and into 2016.

This could be an attractive investment opportunity; especially since the prices of crude are expected to hover around $40 dollars for some time to come.

European Woes?

Eyes are also on the euro; this currency now having entered into a deflationary trend. After Greece has all but abandoned the original position of the troika, some online trading specialists are waiting for other countries such as Spain or Portugal to follow suit.

This instability may counterbalance the drop in precious metals such as gold. Still, this is yet to be seen and any movement will be based upon the approach that Greece takes with lenders such as Germany.

It seems as if online commodity trading may be slightly bearish for the next few months and yet there are still plenty of opportunities to be had.

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