Two-thirds of institutional investors expect oil prices to fall in the Middle East; Decade-high oil bearishness.
Oil Bearishness at 10 Year High
The key insights today: ▪Two-thirds of institutional investors expect oil prices to fall, according to a poll of Goldman Sachs clients. ▪Spain’s economy is forecasted to grow 2.1% in 2026 despite being exposed to high energy costs. ▪As companies increase spending on AI, the outlook for returns remains uncertain. ▪Bonds have been rising and falling alongside stocks in the US, but this correlation is unlikely to persist. ▪Credit investors are increasingly focused on how big tech companies are funding their AI infrastructure and how they plan to make money from it, according to Goldman Sachs Asset Management. ▪Briefings Brainteaser: Which of these economies is projected to be among the five largest in the world by 2050? Want to sign up and stay connected? Click here. Marquee Poll: Investors Most Bearish on Oil in a Decade A record two-thirds of institutional investors expect oil prices to fall despite continued disruption to the flow of oil from the Middle East, according to a survey of Goldman Sachs clients. The 839 investors polled between June 1-3 were the most bearish on oil in the 10-year history of the survey. Oil prices have risen since the outbreak of conflict in the Middle East disrupted traffic through the Strait of Hormuz. A resolution to the tensions would likely reopen the Strait, bringing prices down. Respondents also ranked oil among their favorite assets to short sell. Developed market government bonds were the top choice for short positions for 22% of participants, narrowly ahead of crude oil, which was chosen by 21%. Brent oil, the international benchmark, was trading around $95 per barrel on Thursday, up from $61 at the end of last year. Read more of our insights on energy. Why Spain’s Economy Is Growing Three Times Faster Than the Euro Area Spain’s GDP is expected to grow by 2.1% in 2026, three times the rate forecast for the wider euro area, according to Goldman Sachs Research. The forecast is supported by steady job growth, a strong fiscal position, and “structural resilience” amid the global energy shock, according to senior economist Filippo Taddei.
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