Forget the Trade War. Citi Sees Brent at $78 Within Three Months
- Lender’s forecast implies a 28% rally from current levels
- Pessimism masks bullish market fundamentals, writes Ed Morse
An oil platform in the Gulf of Mexico.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Forget the trade war and global growth pessimism. Citigroup Inc. is sticking to its target of Brent oil rising to $78 a barrel in three months.
Supply risks, rising demand over the northern summer, light fund positioning and a tight physical market are some of the reasons cited by the bank for its optimism in a note by analysts including Ed Morse, global head of commodities research. Citi’s forecast implies a 28% increase from current levels.