Goldman Sachs believes that the price of oil and other commodities are set for a rebound next year and the first catalyst could come as early as this weekend at a G-20 summit in Argentina, where leaders could discuss the U.S.-China trade standoff and an OPEC idea to begin cutting production again.
“Given the size of dislocations in commodity pricing relative to fundamentals with oil now having joined metals in pricing below cost support, we believe commodities offer an extremely attractive entry point for longs in oil, gold and base,” Goldman said in a research report on Monday, as carried by CNBC.
The G-20 summit in Buenos Aires later this week will see the participation of the three key figures capable of swaying decisions regarding oil production policies—U.S. President Donald Trump, Russian President Vladimir Putin, and Saudi Arabia’s Crown Prince Mohammed bin Salman. In addition, President Trump is expected to meet with Chinese President Xi Jinping on the sidelines of the summit to discuss the trade war.