Citi: Here comes $20 oil...

Citi: Here comes $20 oil...

From businessinsider.com

Oil prices are heading lower. In a note Monday, Ed Morse, global head of commodity research at Citi, wrote that with evidence of oversupply in the oil market, the bottom is not yet in for oil prices. "It’s impossible to call a bottom point," Morse wrote, "which could, as a result of oversupply and the economics of storage, fall well below $40 a barrel for WTI, perhaps as low as the $20 range for a while." "The oil market should bottom sometime between the end of Q1 and beginning of Q2 at a significantly lower price level in the $40 range — after which markets should start to balance, first with an end to ... (full story)

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Comment #1
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Feb 9, 2015 4:08pm Feb 9, 2015 4:08pm

Ken A
Joined Jun 2012 | Status: ケンジ | 840 Comments

Yes trust the bank hehe .......

Comment #2
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Feb 9, 2015 4:11pm Feb 9, 2015 4:11pm

Guest
| IP XX.XXX.108.207

oh well! when one can predict that much, one should put more time making money then put their precious time writing these long story and come up with some idea to divert the traffic/traders towards opposite trade,
Oil can go whereever it would but for now,it's not going any $20 OR $10.
the moment a trend comes up clear, then those oposite force will appear on the various sites to tell the world what to do..
PL.... go home

Comment #3
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Feb 9, 2015 6:43pm Feb 9, 2015 6:43pm

deanoracer
| Joined Nov 2010 | Status: Pip Collector | 55 Comments

"its impossible to call a bottom"
"which could, as a result..."
"The oil market should bottom..."
"the markets should start to balance..."

Shoulda Coulda Woulda

by the way, the end of Q1 and the beginning of Q2 is a very short period - like 2 days

Sounds like the author is calling out the timing of a bottom, 1 sentence after stating "it's impossible to call a bottom..."

Comment #4
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Feb 9, 2015 9:37pm Feb 9, 2015 9:37pm

forexings
| Joined Sep 2009 | Status: Membership Revokеd | 609 Comments

I agree with citi. It's impossible to call a bottom point cause we might see LL in next decade or two

You cannot learn better without losing

Comment #5
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Feb 9, 2015 11:35pm Feb 9, 2015 11:35pm

Beacon
| Joined Jul 2008 | Status: Member | 20 Comments

Sounds like Citi has too many short oil positions not closed yet.

Comment #6
Quote
Feb 10, 2015 1:26am Feb 10, 2015 1:26am

KingHussain
| Additional Username | Joined Jul 2014 | 53 Comments

Oil price may go in negative as well. OPEC might pay you to fill gas in your car.

Don't speculate trade with surety.

Story Stats

Posted: Feb 9, 2015 3:21pm
Submitted by:
Newsstand

Category: Fundamental Analysis

Comments: 6 / Views: 3,679