The volatility that rocked the oil market in the last quarter of 2018 may have moderated, but Citi’s global head of commodities research Ed Morse says the market’s “nightmare” is not over yet.
Key quotes (Source: CNBC)
The volatility every year is a good $20 to $25 a barrel between low and high. December was kind of the nightmare for the world where the swings were $50 at a low, $86 at a high and $68 for the average of Brent. We’re not out of this. There’s no real range that we think is going to hold for any length of time.
We have plenty of potentially bullish moves in the market” following a soft patch for demand before the seasonal uptick in fuel consumption begins around May.
Sees US West Texas Intermediate crude’s discount to Brent narrowing, preventing benchmark WTI from falling below the $50-$55 range. Thinks that would be enough to keep US production growth at a good million barrels a day, no matter what OPEC does on price level.
Share
