Goldman, which correctly advised investors to sell crude oil and copper last month before a price slump, boosted its 12- month prediction for Brent crude to $130 a barrel from $107, analysts led by Jeffrey Currie said in a report today. Morgan Stanley raised its Brent estimate by 20 percent to average $120 a barrel this year and by 24 percent to $130 in 2012, it said.
While Goldman and Morgan Stanley join JPMorgan Chase & Co. in saying price declines may present a buying opportunity, interest-rate increases to curb inflation and the European debt crisis have raised concerns that global growth may slow. China, the biggest consumer of everything from energy to copper and soybeans, has increased interest rates four times since mid- October and boosted bank reserve-ratio requirements eight times to cool the fastest inflation since 2008.
“Economic growth will likely be sufficient to tighten key supply-constrained markets in the second half, leading to higher prices from current levels,” the Goldman analysts said. They also advised buying copper and zinc.
Brent advanced as much as 1.5 percent to $111.72 a barrel on the ICE Futures Europe Exchange today after a 2 percent drop yesterday. Copper for three-month delivery added 1.5 percent to $8,925 a metric ton on the London Metal Exchange.
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