Goldman Sachs earns more money on commodities

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Goldman Sachs earns more money on commodities

June 01, 2018 - 10:41
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Goldman Sachs Group Inc earned more money on commodities sector during first few months of this year than during whole last year, Bloomberg reports.

Photo © Pete Linforth, CC0 1.0

Goldman Sachs Group Inc earned more money on commodities sector during first few months of this year than during whole last year, Bloomberg reports.

Commodity sector that was a subject of envy on behalf of Wall Street became a symbol of problems last year for the bank that showed almost 75% of net revenue drop to the lowest level in all company’s history.

However, during just four months of current year, net profit of this sector exceeded 2017 results.

Gas and power unit that was a loser in 2017 benefited from volatility at US energy markets, since north-eastern part of the country was hit by extremely freezing weather as well as Europe on February and March. In April bank benefited from aluminum boom due to US sanction against Rusal.

Goldman Sachs points out that commodity’s demand is rising together with world economy growth, while prices are getting more volatile.

However, commodity results of the bank are still far away from those that were shown during best years, when revenue reached $3 billion.