Citigroup Says Oil Demand to See Further Downward Revisions

WATCH: Ed Morse, global head of commodities research at Citigroup, says “our base case is that oil is going to go down to $85.”Source: Bloomberg
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The outlook for oil demand likely will see further downward revisions amid higher fuel prices, said Ed Morse, global head of commodity research at Citigroup Inc.

“Almost everybody has reduced their expectations of demand for the year,” Morse said in a Bloomberg Television interview Wednesday. Citigroup reduced its forecast by about a third to 2.4 million-2.5 million barrels a day, similar to the US Energy Information Administration and the International Energy Agency. “Demand is simply not growing on an empirical basis to the degree that people had expected.”