• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 hour What-If - Russia decided to take out the Saudi and Kuwait oilfields
  • 6 hours "As the Earth Cools, the Climate Change Hoax Heats Up" by Michelle Edwards
  • 6 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 3 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 9 hours PROFOUND ! "Russian Ruble relaunched linked to Gold and Commodities" by the famous Ronan Manly -- (NOTE the censorship by the MultiPolar New World Order of The Great Reset))
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Citigroup: Oil Is The “Trade Of The Year”

Oil prices surged on Thursday and Friday, staging a 14 percent rally to push oil back above $31 per barrel.

A combination of factors worked together to stop the bleeding for WTI and Brent. Hopes rose for fresh monetary stimulus from the European Central Bank on Thursday when its President Mario Draghi hinted that more action could be forthcoming. Also, Japan’s central bank could also engage in QE-style asset purchasing to boost the economy.

At the same time, a monster snow storm hitting the east coast of the U.S. brought speculation that colder weather could boost demand.

Underlying all of this is the belief that oil could be oversold. Most major investment banks are predicting a rebound in the second half of 2016. Related: Seven Years Of Distortion By The Fed Are About To Take Their Toll

Citigroup went the furthest this week with a major bullish call on the energy sector, saying that oil could be the “trade of the year.” Citigroup sees near-term weakness as the markets worry over additional supplies from Iran, but the 500,000 barrels per day of additional Iranian oil could be a rounding error in the grand scheme of things. After that is worked through, an oil price rally could begin.

Citigroup sees Brent rising to $52 per barrel in the fourth quarter of this year. A survey of 12 oil price estimates compiled by Bloomberg found a mean estimate of $47 per barrel by the end of 2016. Only a few months ago that would have been seen as extremely pessimistic, but given today’s price levels, an increase to $47 would equate to a 50 percent increase in less than a year.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News