US stocks moved modestly higher on Monday as market participants absorbed a greater than 5% jump in oil prices and reports that the Strait of Hormuz remains closed, according to Goldman Sachs.
Front-month Brent crude climbed to $100 per barrel after the weekend surge. Goldman Sachs noted that this level aligns with the average price seen since the onset of the Iran war on February 28.
In a note released Monday, Goldman Sachs analyst Neil Mehta identified 10 energy companies he believes are attractive buys when oil is evaluated on a normalized basis. The bank also discussed the implications of the current energy shock for exploration and production (E&P) companies and for refinery earnings in a podcast conversation featuring Mehta.
The firm’s commentary emphasized that higher oil prices and supply disruptions are driving renewed attention to energy-sector earnings and capital allocation. Mehta’s list of 10 energy stocks reflects Goldman Sachs’ view of which companies are best positioned under the bank’s assumed oil-price regime.
Separately, Goldman Sachs analysts addressed strains in private credit markets. Will Nance said the decline in private credit has raised financing costs and created headwinds for certain consumer-focused payments platforms.
Goldman Sachs highlighted that the private credit disruption is particularly problematic for alternative asset managers that are poorly positioned. Private credit has represented roughly 50% of management fee growth for the alternative managers sector, the bank said, and current dislocations are concentrated among retail investors rather than institutional investors.
Alex Blostein, another Goldman Sachs analyst, commented on potential opportunities within the alternatives sector. He noted that, aside from firms with significant retail exposure such as Blackstone and Owl Rock Capital, there is scope for other alternative asset managers to capture higher fees and credit spreads by supplying capital to private credit vehicles and by originating direct loans.
The bank’s analysis thus frames a market picture where energy-sector dynamics and private credit frictions are both shaping investor decisions: the former elevates attention on E&P and refining earnings, while the latter reallocates capital and fee pools across the alternatives industry.