Citi Tells Investors to Stop Worrying and Learn to Love Oil
- OPEC output cuts are cleaning up the crude market, bank says
- Saudi Arabia will try to defend oil prices through 2017: Citi
Saudi Arabia Tells OPEC Production Rose in February
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Buy oil now, and count on Saudi Arabia for support, according to Citigroup Inc.
OPEC’s output cuts aimed at easing a global glut are “real” and is cleaning up the market, analysts including Seth Kleinman wrote in a report dated March 14. While prices have dropped recently amid rising U.S. inventories and drilling activity, investors should take advantage of the slide because the Saudis are likely to defend prices this year, according to the bank.