"Goldman Sachs" said today that in the introduction to its recommendations for the circulation of the 2020 composition of credit centers on the index of commodities, with a record better returns from oil likely, and attributed this to a decline in capital spending as a whole, which will result in a shortage of supplies accordingly.
Despite a stable outlook for record oil prices, Goldman Sachs expects oil to achieve a 10 percent return next year, according to Reuters.
The bank said in a note that in 2019 due to a decline in supplies due to reduced capital spending.
He explained that the "sharp and noticeable" decline in capital spending gives OPEC + group (which includes the Organization of Petroleum Exporting Countries, Russia, and other producers) confident that it can manage the oil surplus in 2020, despite the expected large increase in non-OPEC production next year.
The bank said, "In the absence of growth or geopolitical shocks, we expect trading Brent continues to around $ 60 a barrel in 2020, as there will be a need for cuts" OPEC "and slowing activity of oil shale to offset a strong increase in the supply of other places."
Experiencing global commodity markets, significant activity is very, compared to other world markets. This is due to oil, which is the largest commodity being traded in the world in terms of quantity and value.
Commodity markets, the oldest in human history, trade in the raw materials necessary for life. These markets have been accompanied by growth in human societies, and development in financial and commercial transactions such as the invention and use of money, the emergence of companies and international trade.
Banks is one of the most important traders in the commodity markets, as the operations of risk aversion and speculation usually carried out by international banks in addition to the speculative operations of private bank funds.
