SINGAPORE (Bloomberg) -- Goldman Sachs Group Inc. says keeping the faith in commodities is paying off.
Four weeks after the bank called for patience as prices tumbled the most in eight months, most raw materials are back to levels from before the sell-off. Goldman says its own temperance is yielding results as its top 2017 trading recommendation of going long on the S&P GSCI Enhanced Index is back in the money by 7%, according to a report dated April 12.
The bank’s confidence is unshaken as it believes macroeconomic data will show improvement, Chinese demand for metals will increase and OPEC’s crude production cuts will lead to a decline in oil stockpiles. Goldman maintained its overweight recommendation on commodities and its 3 and 12 month forecasts for gains of 5% and 4%, respectively. Supply uncertainty has been mostly resolved, reinforcing confidence in long-term pricing and leaving demand as the primary focus for the market, according to the note.
“We still believe that the market needs more patience,” analysts including Jeffrey Currie and Michael Hinds wrote in the report. “Macroeconomic data has been partially distorted by weather events in the U.S. In China, we still have no hard data yet for March to know whether the post-Chinese New Year rebound in activity has occurred, and the oil draws were not anticipated until second quarter.”
The S&P GSCI measure of commodities slid 3.5% last month, its biggest drop since July, amid losses in oil, nickel and sugar on concerns that supplies were abundant. But in April, the gauge is up more than 3% as crude rebounded on optimism the Organization of Petroleum Exporting Countries will extend its output cuts aimed at easing a global glut. The Bloomberg Commodity Index has gained almost 1% this month after a 2.7% decline in March.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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