Citigroup Inc.’s Ed Morse, the global head of commodities research, said the oil market would need a lot more uncertainty over supplies before prices could reach $100 a barrel.
(Bloomberg) — Citigroup Inc.’s Ed Morse, the global head of commodities research, said the oil market would need a lot more uncertainty over supplies before prices could reach $100 a barrel.
“There is a scenario for $100 a barrel oil. But I don’t think we’re anywhere near that yet,” Morse said in an interview on Bloomberg Television.
His comments come as Sunday’s surprise OPEC+ production cuts prompted some analysts to revive calls for $100 oil. Goldman Sachs Group Inc. raised its forecast for Brent crude in 2024 to $100 a barrel from $97 after the supply cut and amid positive momentum for global demand. Brent rallied more than 8% on Monday to as high as $86.44.
Citi’s Morse said that “significantly more” oil would need to be taken out of the market before prices would rally to $100, and that the supply disruption would need to take place in a situation with more uncertainty.
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