Its too late for OPEC to rescue oil – Goldman Sachs

FXStreet (Mumbai) - Analyst at Goldman Sachs believed the recovery in oil prices towards the end of January was only a dead cat bounce.

The Wall Street banker said that the black gold is set to record new multi-year lows below $ 26, despite chatter around OPEC coming to save the oil markets.

Goldman Analysts noted in its latest report:

"It may already be too late for OPEC producers to be able to prevent another large decline in prices."

"We continue to view a coordinated production cut as highly unlikely and ultimately self-defeating."

“Giving in now would backfire on OPEC by allowing U.S. production -- which is slowly declining -- to rebound. That's because the American shale oil companies that have powered the U.S. energy boom would be able to quickly ramp up output once prices rise.”