Goldman Sachs signals the end of the increase in the price of oil

Goldman noted that the oil price is in the air bag inflated record levels of speculative trading. Photo: David Mcnew/Getty Images
Oil prices fell Tuesday as high as $ een 3.25 after the world's largest crude supplier is called the asset's market and the range of other commodities-at least for the moment.

Goldman Sachs, the initiation of its clients to sell the oil, copper, Platinum, and cotton, the investments made, arguing that the record levels of crude speculative trading pushed their prices are up so much in recent months that "in the near future, the risk-reward no longer favours" holding these assets.

the 25% increase in the CCCP basket (which includes crude oil, copper, cotton, beans, and Platinum), the value of the four months after the investors, the best bet is to quit, even though they are in front of the Bank.

Goldman is a huge impact on the market and the EUROPEAN INVESTMENT BANK (EIB), the recommendation is backed by another influential player. The International Energy Agency (IEA) warned that the oil was now so expensive, was hitting in the global economy, oil and other commodities in demand reduction. This is likely to lead to a "less nieltävissä the route price control," the IEA said.

In the meantime, the Chinese and the Japanese Economic Outlook after the commodities remain of concern is the International Monetary Fund, warning that potentially damaging credit and asset Bubbles could be forming in the people's Republic of China, while Japan's Nuclear and industrial safety agency raised the country's nuclear crisis, the severity level.

Brent crude fell by as much as 2.6% to $ 120.73, $ afternoon affected 120.94 has risen slightly before. Copper fell by more than 2%, decreased by around 1% and 3% cotton almost went platinum. Gold fell 1 percent, almost 2% sugar and wheat, almost 3%.

Note customers Jeffrey Currie, commodities in General, the Director of strategy for Goldman, said that its decision in December to advise clients to invest in the CCCP bin had "been driven by demand from companies leading the emerging expected."

He went on: "even if the playing time in this year in parts of the energy basket, it was over, the supply shock been driven by events in the Middle East. That has been adversely affected as a result of the loss of trade, the more the risk, taking account in particular of the speculative longs [trading] record levels of crude. "

Up to $ 27 each barrel in the price of oil is keinottelijoilta (10), who buy oil rather than an investment, you can use it in calculations, Reuters. The value of the outstanding oil futures contracts hit a record $ 26.7bn this month, according to Bank of America Merrill Lynch's hedge fund monitor, such as the keinottelijoilta (10) a bet, that the oil price rise will continue.

Tony Dillon, oil specialist at ICIS Heren, energy, the researcher said: "the Goldman Note has certainly had an impact. Events of oil has risen on the Libyan people and the Japanese back and say, now, hang on, maybe we overdid it.

Dillon is added to the "setting the standard in crude oil prices and the closely related to other commodities in General," and "as available" basis.

Even though the CCCP-basket is still the possibility to increase the value of the next 12 months-if emerging economies work well and are used as the basis for the demand of stoke-Currie has recommended that his clients in the short term to sell.

"Not only in the destruction of oil demand in the u.s. is now a new biomedical characters, but also to Record the length of the oil market speculation, Nigeria elections and any ceasefire in Libya," says Currie, adding that these are setting off fears that the unrest in the Middle East could be spread by the pressure of the prices upwards.

Copper and Platinum prices "in the face in the near-term headwinds," high oil prices will reduce demand for the products, and, in turn, their raw materials, Currie said. At the same time, a crisis arising from the problems of supply, the Japanese have reduced the demand for manufacturers ' output, hitting in particular Platinum, which is a key component in the manufacture of the car. The high price of copper is too is "exposed" Currie.

CCCP-bin is a 40% weighting, oil, 20% copper, 20% cotton, 10% for Platinum. 10% of the soya bean, which Is expected to keep rising for Goldman, such as the growing number of Chinese it feeds the pigs and other animals. Three years ago, predicting Goldman rattled investors in the oil content of the "super spike", which would push prices of $ 200, depending on the size of the barrel to turn of the Decade.

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