Citigroup Sees Oil Falling Despite OPEC Efforts to Prop Near $80
- Market still waiting to see the effects of a Chinese recovery
- Morse sees Chinese demand boosting markets at end of the year
This article is for subscribers only.
Oil prices are likely to fall below $80 a barrel even with OPEC’s recent apparent efforts to support that level with unexpected cuts, according to Ed Morse, global head of commodities research at CitiGroup.
China’s long-awaited recovery has been slower than expected, while the prospect of economic slowdowns in the West is crippling demand, he said. “We’re waiting to see what’s really happening with the economy, but it is a slower recovery,” said Morse in an interview with Bloomberg Television. “If anything, that will be an end-of-year phenomenon.”