The recent uptick in oil prices is yet to convince investors that current levels will be sustainable, analysts at Goldman Sachs said Monday.
Oil prices have skyrocketed almost 50 percent since the middle of last year, but investors were said to be unsure over a number of factors seen propelling the rally. U.S. producer discipline, healthy global demand and supply disruptions were all viewed with a sense of caution among investors, according to the investment bank.
"Most importantly, investors remain unconvinced U.S. producer discipline will hold," Goldman analysts said in a research note.
"That supply growth needs to be constrained voluntarily, even in the face of a more constructive demand outlook [that] still leaves investors more focused on other metals and mining, where there is greater confidence in China policy-driven supply constraints," it added.