
The commodities cycle that sent prices rising almost fourfold over 10
years is reversing and will eventually drive raw materials into a
structural bear market, Goldman Sachs Group Inc. (GS) said.
Growth in shale oil output will keep U.S. energy prices low, reinforcing
economic growth and leading to more tapering of government stimulus,
the bank said in a report dated yesterday. That will cut raw-material
demand in emerging markets and lead to weakened currencies that will
encourage more production. The new cycle is the opposite of the “