Bloomberg (gated) reporting on an interview it had with Ed Morse, global head of commodity research at Citigroup:
- Oil is unlikely to fall below $70 a barrel, but it would take a “wild card” event to push prices above $90
- OPEC+ doesn’t want oil prices to fall below $70 and has shown that it will slash production in order to keep prices afloat
- US’ commitment to refilling its Strategic Petroleum Reserve with prices around $70 a barre
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Oil is unlikely to rise above $90 a barrel with supply tightness factored in
- Morse notes that extreme weather events, including hurricanes, could change the outlook.
- Additionally, the obstacles to invest in fossil fuels and reduction in demand are leading to more market volatility.
- oil market will move between supply shortages and oversupply
- But “oversupply won’t be big enough to get us down to $20, or let alone negative prices, and the undersupply won’t be big enough to get us over $100, but it will mean volatility in the market.”
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Earlier on oil:
Update:
