Goldman Sachs: Oil prices to be dampened by hedging after Iranian attack on Israel over the weekend

Goldman Sachs remarks after the weekend’s Iranian attacks:

• “Our commodity strategists do not expect a further substantial rise in oil prices.”
• Hedge funds “continued to sell off U.S. energy stocks for the third straight week, and the sector has now been net-sold in 5 of the last 6 weeks.
• “Any rise in oil prices due to higher geopolitical risks could be mitigated by the decision of oil producers to hedge their price risks and sell their production forward”

But GS remains agile:

• “Israel’s potential response to the Iranian attack is highly uncertain and will likely determine the extent of the threat to regional oil supplies”

Oil Price Update with Globex Open for the Week:

This article was written by Eamonn Sheridan at www.forexlive.com.

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