Goldman Sachs: oil prices will be dampened by hedging after Iran weekend attack on Israel

Remarks from Goldman Sachs after the Iranian attacks over the weekend:

• “Our commodities strategists do not expect substantial further upside to oil prices.”
• Hedge funds “continued selling US Energy stocks for the 3rd straight week, and the sector has now been net sold in 5 of the last 6 weeks
• “Any rise in oil prices on higher geopolitical risks may be dampened by oil producers deciding to hedge their price risks and sell forward their production”

But, GS do stay nimble:

• “The potential Israeli response to Iran’s attack is highly uncertain and will likely determine the extent of threat to regional oil supply”

Oil price update with Globex open for the week:

This article was written by Eamonn Sheridan at www.forexlive.com.