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Goldman Sachs: This Oil Rally Is Not Going to Last


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Pumping jacks stand near an Anadarko Petroleum Corp. oil rig site in Fort Lupton, Colorado, U.S., on …

Oil has been surging this week but Goldman Sachs is calling for gains to be short-lived.

The front-month West Texas Intermediate futures contract enjoyed a double-digit advance in recent days, breaking above $50 per barrel on Thursday for the first time since July:

"While this rally has occurred alongside a broader re-risking across assets after last week's U.S. non-farm payrolls release, the oil move has been larger, exacerbated by still large short positioning and the break of key technical levels," wrote Jeffrey Currie, head of commodities research at Goldman Sachs.

Currie writes that...