| Analysts at Goldman Sachs have taken a downbeat stance on the commodities segment, downgrading the sector to underweight on a 12-month basis due to the weak outlook for oil. In a note dated May 20, the analysts said they continue "to believe that oil markets remain oversupplied and that the current price should stimulate supply from low-cost producers and put downside pressure on the oil price."
The investment bank further cut its rating on credit in the near term to neutral and kept its 12-month underweight call. "[A] near-term risk to a constructive outlook for credit, in particular U.S. [high yield], is a weaker oil price, as credit sentiment has been closely linked to the oil price since last year," the analysts said in the note...............................................Full Article: Source
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