Reported 8 months ago
Citi's Global Energy Strategist Eric Lee predicts that despite the current rise in oil prices, they could potentially drop to the $60s next year due to factors like slowing US gasoline demand and refinery profitability issues. Lee emphasizes that geopolitical factors and weather patterns are causing market volatility, and fundamentals suggest a bearish trend in oil prices for next year, independent of other sectors. He anticipates a significant decline to the $60s from the current level of the low eighties, with global oil stock expected to increase. This forecast reflects a disconnect between the oil market and other sectors, driven by slowing oil demand growth and the ongoing energy transition to electric vehicles.
Source: YAHOO