The rise of raw material prices observed in the markets recently, not linked to fundamental market factors. This opinion was expressed by analysts of the American investment Bank Goldman Sachs.
In their view, sustainable environment for high oil prices in terms of balance of supply and demand will not develop until at least the third quarter of 2016, RIA Novosti reported.
On this basis in the short term, oil prices may fall, because the current reduction in oil production in the U.S. does not compensate for the increase in the supply of cheap oil from Iran, experts say.
Furthermore, they indicate, is not secured by fundamental factors and the recent increase in metal prices: copper, iron ore, silver and gold. “Despite the fact that the prices of raw materials have the potential to climb even higher, we believe that the price rally is not supported by changes in fundamental factors”, — said in a research note by Goldman Sachs.
Bank experts believe that the current rebalancing of supply and demand is short-lived. Sustainable deficit in commodity markets is still not observed.
According to forecasts by Goldman Sachs, the price of iron ore by the end of 2016 to fall to $35 per ton. Now the price of iron ore is $68,7 per ton, last month it increased by 30%.
