Citi Says Oil May Climb to $90 as Stockpiles Shrink This Winter

Related Articles

imageCommodities48 minutes ago (Oct 11, 2021 10:27AM ET)

(C) Reuters. Citi Says Oil May Climb to $90 as Stockpiles Shrink This Winter

(Bloomberg) — Citigroup Inc (NYSE:C). said oil prices may hit $90 a barrel at times this winter as gas-to-oil switching drives stockpiles lower.

The bank, which raised its Brent oil forecast for the fourth quarter to $85, said inventories may dwindle to their lowest level on record in terms of days-of-cover by year-end. That comes as consumption gets a boost of as much as 1 million barrels a day from consumers switching away from natural gas to oil-based products amid surging energy prices.

Brent oil is already trading close to $85 a barrel, while West Texas Intermediate hit its highest since 2014 as traders gear up for higher levels of consumption amid a global energy crisis. At the same time the Organization of Petroleum Exporting Countries and its allies are only slowly returning supply to the market.

While the group is sticking to its plan to add 400,000 barrels a day of supply per month for now, it may choose to start doubling its rate of hikes to 800,000 barrels a day, under pressure from key consumers like the U.S., China and India, according to Citigroup.

(C)2021 Bloomberg L.P.

Citi Says Oil May Climb to $90 as Stockpiles Shrink This Winter

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Subscribe

Category

Popular stories