Oil price market comments from a Goldman Sachs report
(This is not fresh news/comment from a Goldman Sachs report, out overnight):
- The rising oil prices "simply are not sustainable in the current environment"
- Goldman Sachs go on to explain about the rise in oil prices attracting shale producers to pump more output:
- The market market "needs lower prices", because high price will see US shale producers ramping up output, and the dynamics will mean that "an oil price rally will prove self-defeating, as it did last spring."
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The idea that higher prices will attract more output is not a fresh one, Goldman Sachs restating the case of US shale as a 'swing' producer.
