Citi: An Oil Supply Squeeze Is Inevitable

29 Sep 2017   Prices

In just the last couple of days we’ve seen one analyst predict prices of $80 per barrel, while a panel of several other analysts forecast a price drop if OPEC ends its production cut deal as planned in March 2018. Now Citi has joined in with a warning: whatever OPEC does, supply will likely get tighter next year . That’s in stark contrast with the general mood, which is a constant worry that the moment OPEC announces the end of its deal, its members will turn the taps back on and start pumping that oil to levels well above the current quotas. According to Citi’s Ed Morse, the head of the bank’s commodity research, five OPEC members are already pumping at capacity, and a production increase is therefore unlikely. The members that Morse believes will lead the supply crunch are Iraq, Iran, Nigeria, Venezuela and Libya. All of these, […]

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