Goldman Sachs has a rosy outlook on commodities for the balance of the year

Goldman Sachs bullish on commodity demand in 2017: We are entering the stage of the business cycle typically characterized by higher commodity demand. Higher demand is driving Goldman Sachs Research’s positive commodity outlook in 2017, Jeff Currie, head of commodities research, says. He expects oil will trade marginally higher during the year as inventories normalize but will remain bounded by low-cost shale production, explaining that “when commodity demand is above commodity supply, deficits result, inventories are drawn down and scarcity premiums begin to arise.” Currie says scarcity in this context does not refer to future commodity supply but instead to low inventories creating the need for spot prices to rise and forecasts oil to trade between in the USD 55-60 per bbl range.