Oil Prices: A Look at the Ceiling and Floor
Oil prices have been a hot topic in the news lately, with many speculating on where the market will go next. In July of 2023, Citigroup Inc.’s Ed Morse weighed in on the subject, predicting a ceiling of $90 per barrel and a floor of around $70.
Citigroup’s Ed Morse
Morse is the head of commodities research at Citigroup, and he has been in the industry for over 30 years. He has a long history of making accurate predictions about the oil market, and his latest forecast is no exception.
Oil Prices in the Last Year
Oil prices have been volatile in the last year, with prices ranging from a low of $45 per barrel to a high of $80. This volatility has been driven by a variety of factors, including the pandemic, geopolitical tensions, and the global economy.
Morse’s Predictions
Morse believes that the current volatility in the oil market is likely to continue in the near future. He predicts that the price of oil will remain between $70 and $90 per barrel in the coming months.
Factors Affecting Oil Prices
Morse believes that there are several factors that will affect the price of oil in the near future. These include the global economy, geopolitical tensions, and the pandemic. He also believes that the demand for oil will remain strong, as many countries are still relying on it for energy.
Oil Prices and the Global Economy
Morse believes that the global economy will have a major impact on oil prices. He believes that if the global economy continues to recover, then oil prices will likely remain in the $70 to $90 range. However, if the global economy takes a turn for the worse, then oil prices could drop below $70.
Geopolitical Tensions
Morse also believes that geopolitical tensions will have an impact on oil prices. He believes that if tensions between countries increase, then oil prices could rise. On the other hand, if tensions decrease, then oil prices could fall.
The Pandemic
The pandemic has had a major impact on the global economy, and it has also had an impact on oil prices. Morse believes that if the pandemic continues to worsen, then oil prices could drop below $70. On the other hand, if the pandemic improves, then oil prices could rise.
Conclusion
Citigroup Inc.’s Ed Morse has weighed in on the current state of the oil market, predicting a ceiling of $90 per barrel and a floor of around $70. He believes that the price of oil will remain between these two levels in the near future, and that the global economy, geopolitical tensions, and the pandemic will all have an impact on the price of oil.