Oil continues to climb. Brent crude has had five straight weeks of gains and surged 13 percent so far this month, rising towards $124 US a barrel on Friday
Traders say concern over Iranian supply cuts has offset worries high oil prices could restrain demand. In a note to clients Goldman Sachs says the impact of rising oil prices on stock markets should be limited.
"Although commodity-consuming sectors are likely to suffer, the positive impact on commodity producers should counterbalance this."
Goldman says the proportion of commodity-related companies in the equity market has been rising in recent years -- and 16 percent of the market directly benefits when oil and metal prices rise.
The investment bank recommends hedging higher oil prices by taking long positions in oil services, integrated oil and gas majors, oil exploration and production firms and renewables -- and going short general retail, food retail, airlines, road and rail companies and building materials stocks.
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