Commodity Collapse Has More to Go as Goldman to Citi See Losses
- Morgan Stanley sees `long winter' for prices lasting years
- Open interest posts fourth straight monthly drop in September
More Pain on the Way for Commodities?
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Even with commodities mired in the worst slump in a generation, Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. are warning bulls that prices may stay lower for years.
Crude oil and copper are unlikely to rebound because of excess supplies, Goldman predicts, and Morgan Stanley forecasts that weaker currencies in producing countries will encourage robust output of raw materials sold for dollars, even during bear markets. Citigroup says the sluggish world economy makes it “hard to argue” that most prices have already bottomed.