• 4 minutes Trump has changed into a World Leader
  • 7 minutes China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 8 minutes Indonesia Stands Up to China. Will Japan Help?
  • 10 minutes US Shale: Technology
  • 13 minutes Which emissions are worse?: Cows vs. Keystone Pipeline
  • 17 minutes Shale Oil Fiasco
  • 15 mins Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 15 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 5 hours Phase One trade deal, for China it is all about technology war
  • 8 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 1 hour Might be Time for NG Producers to Find New Career
  • 12 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 15 hours Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 10 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 14 hours Wind Turbine Blades Not Recyclable
  • 13 hours Denmark gets 47% of its electricity from wind in 2019
  • 1 day Beijing Must Face Reality That Taiwan is Independent
Alt Text

How Important Is The Suriname Oil Discovery?

Guyana has been the offshore…

Alt Text

Goldman Sachs: This Oil Rally Won’t Last

Investment bank Goldman Sachs thinks…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Citibank: We’re Nearing A Bull Market For Oil

Citigroup is “especially bullish” on commodities in 2017, the bank says.

“The oil market is treading water for now, but the oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade,” Citi analysts, led by Ed Morse, wrote in a research note published on July 11.

There is a quite a bit of volatility in commodity markets, especially for oil, but global demand continues to grow at a steady pace. Prices have crashed on oversupply, but with oil production going offline, particularly in the U.S., the markets could over-correct, creating the conditions for higher prices next year.

More recently, the Brexit vote raised concerns about global growth and financial stability, but it will be forgotten as demand continues to soak up excess supply. To be sure, investors are wary of getting burned again after oil prices briefly rallied to $60 per barrel a year ago, which was followed by a renewed price crash.

But Citi says this time is different. “Unlike last year, when commodity markets rallied through the second quarter only to fall sharply come the third as oversupply persisted, this rally looks more sustainable as physical markets have tightened considerably,” Citi analysts wrote. “Global demand continues to grow at a moderate rate while the pullback in capital spending is reducing not just supply growth but total supplies across nearly all extractive industries.” Related: U.S. Oil Rig Count Higher, Sees Biggest 2-Week Rise In A Year

Oil prices will likely rise in the coming months, with a more sustained rally set for next year. “Prices are expected to resume their ascension in 2017 as the market rebalances further and this should be bolstered by deepening cuts in non-OPEC oil production,” Citibank said. “[T]he pendulum is clearly swinging from the bears to the bulls.”

Indeed, the U.S. continues to see production drop off. The latest data from the EIA shows that output fell by 194,000 barrels per day for the week ending on July 1. Weekly estimates are not always the most accurate, but the decline is surprisingly large. If true, U.S. oil production is down 1.2 million barrels per day from the April 2015 peak, with more declines expected.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Byung min on July 11 2016 said:
    I don't get it what really they want to talking about the thing is I got in this page because I believe they want to talk about citibank but I didn't get it
    Have a great day.
  • Clyde Boyd on July 12 2016 said:
    Sounds like more wishful thinking market manipulation
  • Iceman Harris on July 12 2016 said:
    Real question, which "radical" group will be nominated for pipeline/refinery destruction?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play