Reported 8 months ago
Citigroup warns that global crude oil inventories will significantly increase next year while global oil demand growth will slow down, predicting oil prices could drop to $60, contrasting sharply with the current strong demand and high prices. Citigroup estimates oil prices will consolidate in the range of $80 to the mid-range in the summer of this year. However, looking ahead to the second half of this year and next year, the market supply will become looser. Citigroup further points out that global crude oil inventories will increase significantly next year, but global oil demand growth will slow down, possibly reaching its peak before the end of this decade. Compared to other foreign investment banks, Citigroup's forecast is the most pessimistic, with most predicting that oil prices will stay above $80 per barrel this summer but drop to the $70 range in the fourth quarter and early next year.
Source: YAHOO