Citigroup sees Oil falling despite OPEC efforts to prop near $80 – Bloomberg

Ed Morse, global head of commodities research at Citigroup, flags Oil price weakness despite the previous week’s surprise supply cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) during an interview with Bloomberg.

Key comments

Oil prices are likely to fall below $80 a barrel even with OPEC’s recent apparent efforts to support that level with unexpected cuts.

China’s long-awaited recovery has been slower than expected, while the prospect of economic slowdowns in the West is crippling demand.

We’re waiting to see what’s really happening with the economy, but it is a slower recovery.

If anything, that will be an end-of-year phenomenon.

WTI remains pressured

WTI crude oil extends the week-start pullback to $79.80 during the early hours of Tuesday’s Asian session.

Also read: WTI Price Analysis: Testing the $80 level on broad US Dollar