• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 2 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 1 day Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 14 hours The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 4 days What China is Learning from Russia's War in Ukraine and its Consequences
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Citi: Oil Will Continue Rising This Quarter

  • Citi: Crude oil prices will continue rising this quarter as global oil inventories drawdowns continue and OPEC sticks to its limited addition output policy
  • Citi's Ed Morse: U.S. shale could surprise the oil markets with new production boost

Crude oil prices will continue rising this quarter as global oil inventories drawdowns continue and OPEC sticks to its limited addition output policy, Citi’s head of commodity research Ed Morse told Bloomberg.

Morse commented that it was funny how oil prices reacted following OEPC+’s latest announcement after its meeting on Thursday, going down instead of up as one would expect. He also noted that OPEC had moved from the role of the “central bank of oil” to the role of regulator, keeping a cap on supply to keep prices higher.

Asked whether OPEC+ had the capacity to increase production should demand growth accelerate at some point, Morse said that some OPEC+ members certainly had the capacity. While some members of the group had suffered a drop in production capacity due to underinvestment, he said Saudi Arabia, Russia, the UAE, and Kuwait could boost production quickly, by about 3 million bpd.

Yet OPEC is not the only player in the field, according to Morse. In fact, he thinks the U.S. could surprise everyone next year by ramping up production substantially. U.S. production, Morse said, could grow by a lot more than any individual OPEC country in 2022.

While the U.S. oil industry ramps up, however, the U.S. administration is experiencing an embarrassing moment, Morse also said, referring to the White House’s accusations towards OPEC of being responsible for bringing more oil to the market to keep retail fuel prices lower.

“This is an embarrassing moment for the U.S. government under the Biden administration, which has been not looking at fossil fuels,” Morse said, adding that production in the Permian was already back to pre-pandemic levels and about to “explode” with production next year.

In this context, Morse expects a year from now, OPEC may have to think about limiting production again as prices would fall dramatically from current levels.

By Irina Slav for 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