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Re-emerging Chinese Oil Demand Will Not Drive Price To $100/bbl: Citi Group

OIL

The reopening of the Chinese economy will not drive oil prices back to $100-120/bbl, amid ample global supply, Ed Morse, global head of commodities research at Citi Group said in a Bloomberg interview earlier today.

  • “The only way to get oil prices back to $100-120/bl is to have a bunch of supply disruptions like Libya, Nigeria, maybe even Iran and Iraq. It is a supply side phenomenon to get above”, Morse said.
  • “China demand coming back will of course have an impact on the market, but we are in a world where demand is sloshing downward around the world”, he said.
  • China has already stepped-up oil imports and “since the middle of the summer China has increased imports, now there are 2mn b/day in imports”, Morse added.
  • “I think there is ample supply in the market for us to not have a big impact from China”, he said.

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