Goldman Sachs: This Oil Rally Will Fade

Goldman Sachs is not giving up it's $20 "price target" yet....

Goldman Sachs believes that the recent oil rally won't last, as fundamentals do not support the price action. In a research note issued yesterday, Goldman warned its clients that the sharp rally in oil prices that been taking place since last Friday (October 2), has been exacerbated by still significant short positioning and the break of key technical levels.

The data releases over the past week have suggested no change in oil fundamentals. Oil stocks continue to point to an oversupplied market despite a gradual decline in US production.

Oil fundamentals unchanged

At the time of writing, the price...