The Financial Post reports key comments delivered by the Citigroup’s commodities chief Ed Morse in an interview on the oil-price outlook.
Key Headlines (courtesy Oilprice.com):
“Oil could be back to US$45 a barrel within 12 months.
The bullish case for crude is based on a faulty analysis.
It is illogical to forecast a decline of production in places where production will not be declining, such as the Canadian oil sands.
OPEC as a case in point, given, its ability to consistently produce an average 35 million bpd over a 50-year period.
In the immediate term, however, oil will continue strong.
It can’t really be any other way: the supply disruption potential in Libya and Venezuela, the Iran sanctions, and the US-China trade war are all arguments for the bullish case for oil and they will remain on the scene in the next few months.
Next year, however, Brent could drop back to between US$45 a US$65 a barrel.”
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