• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 3 hours Australian Voters Reject 'Climate Change' Politicians
  • 10 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 3 hours Shale to be profitable in 2019!!!
  • 2 hours Global Warming Making The Rich Richer
  • 44 mins Greenpeace Blocks BP HQ
  • 14 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours California Threatens Ban on ICE Cars
  • 4 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 18 hours IMO2020 To scrub or not to scrub
  • 2 hours Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 18 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 10 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 19 mins Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 10 hours DUG Rockies: Plenty Of Promise, Despite The Politics
Alt Text

The Driving Force Behind Nigeria’s Energy Renaissance

Nigeria has traditionally been one…

Alt Text

Oil Markets Must Prepare For Maximum Fear

Oil prices this week are…

Alt Text

The Marijuana Industry’s Dirty Little Secret

Cannabis cultivation requires enormous amounts…

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:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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