Citi says oil could briefly touch $100/bbl, but even $90 is not sustainable

<p>A note from Citigroup commodity analysts via <a href="https://www.cnbc.com/2023/09/18/geopolitics-could-drive-oil-prices-over-100-citi-says.html" target="_blank" rel="nofollow">CNBC </a>(gated). </p><p>Analysts at the bank say Oil prices may head toward $100 "for a short while", citing output cuts and geopolitical tensions. But that level is not sustainable and the price is likely to drop into the end of the year:</p><ul><li>"The Saudi appetite to withhold oil from market, supported by Russia maintaining a certain level of export constraint, points to higher prices in the short term, all else equal, but $90 prices look unsustainable given faster supply growth than demand growth ex-Saudi/Russia," </li><li>"Higher prices in the near term could make for more downside for prices next year,"</li><li> production is rising among non-OPEC+ members like the US, Brazil, Canada, and Guyana. Even Venezuelan and Iranian exports have grown. </li></ul><p>Forecasts:</p><ul><li>see oil averaging $84 in Q4 2023</li><li>see it in the low-$70 range in 2024</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.