Citi Sees $65 Oil By Christmas

19 Apr 2017   Prices

Maybe the surge in U.S. shale production won’t kill off the oil price rally after all. Oil prices could rise as high as the mid-$60s per barrel by the end of the year, according to a new analysis from Citigroup. That even takes into account the ongoing rebound in U.S. shale production. U.S. oil production is up nearly 700,000 bpd from a low point in the third quarter of 2016, with total output now up to more than 9.2 million barrels per day. But the shale industry is just getting started. Some of those gains came from offshore projects in the Gulf of Mexico that were in the works for a long time. Meanwhile, the rig count in the Permian basin has been rising, but because production data shows up on a several month lag compared to the rig count, further gains in output are surely forthcoming. In fact, […]

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