Goldman Sachs said that it is not looking forward to the continued rise in oil prices after the Iranian attacks over the weekend.
Our commodity strategists do not expect a further significant rise in oil prices.
Hedge funds continued to sell us energy stocks for the third week in a row, and the sector has now been sold off net in 5 of the last six weeks.
Any rise in oil prices due to rising geopolitical risks may be diminished by the decision of oil producers to hedge price risks and sell their futures production.
The likely Israeli response to the Iranian attack is highly uncertain and is likely to determine the extent of the threat to regional oil supplies.
