Goldman Sachs: This oil rally is not going to last

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

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

Currie writes that we’ve seen this play before, pointing to the parabolic surge in oil prices in late August that occurred following the huge equity market sell-off.