Citi Says Oil’s Rally Should Fizzle on Supply From Outside OPEC+
- Prices may top $100 but only for a short while, bank says
- Supply from US, Brazil, Guyana and others should weigh on oil
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Oil prices should ease as a result of an increase in supply from countries other than OPEC+ leaders Saudi Arabia and Russia, Citigroup Inc. said.
While technical traders and geopolitical risks may push prices over $100 for a short period, the extra supplies mean that “$90 prices look unsustainable,” analysts, including Ed Morse, wrote in a note. That should, in turn, reduce the price of key fuels such as gasoline and diesel.