• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 27 mins Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 2 hours Dyson Will Build Its Electric Cars in Singapore
  • 2 hours China Opens Longest Mega-Bridge Linking Hong Kong to Mainland
  • 14 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 24 mins Why I Think Natural Gas is the Logical Future of Energy
  • 4 hours Satellite Moons to Replace Streetlamps?!
  • 4 hours Can “Renewables” Dent the World’s need for Electricity?
  • 29 mins How Long Until We Have Working Nuclear Fusion Reactor?
  • 53 mins These are the world’s most competitive economies: US No. 1
  • 2 hours The Balkans Are Coming Apart at the Seams Again
  • 15 hours EU to Splash Billions on Battery Factories
  • 14 hours Get on Those Bicycles to Save the World
  • 10 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
Alt Text

Is There Too Much Light Crude On The Market?

Light crude typically sells at…

Alt Text

Elon Musk Plans First Commercial Flights To Mars

Despite the headwinds he faced…

Alt Text

U.S. Shale Has A Glaring Problem

Even after more than two…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News