Oil’s Recovery Looks Fragile to Goldman Sachs as Supplies Return

The recovery in oil, which has rallied 80 percent from lows reached in February, remains “fragile” as disrupted supplies return to market and prolong a global surplus, according to Goldman Sachs Group Inc.

Canadian output halted by wildfires is resuming, OPEC members are pumping more than expected and the price rebound may revive shale drilling in the U.S., the bank said in a report. Goldman maintained its forecast that U.S. crude will trade at $49 a barrel in three months’ time.