- Oil declined after a two-day rally but is still set for a weekly gain after rising almost 11% in the past two days
- Traders have experienced continued volatility as competing market forces make it difficult to pin down the proper value for oil
- In the short-term, recent reserve releases by oil-consuming nations, along with a virus resurgence in China, have weighed on price
- Signs of easing Covid restrictions and China’s central bank mulling measures to help boost the Chinese economy have led to the recent rally
- One of the few more bearish banks see Brent averaging $73/Bbl in 4Q (BBG)
- Citibank is neutral on crude in the near term, with risks skewed to the upside, according to the bank’s analysts Francesco Martoccia and Ed Morse in April 13 note
- The bank lowered estimates for oil consumption growth globally from 3.6 MMBbl/d to 2.2 MMBbl/d
- U.S. supply growth is forecast to accelerate through 4Q, but unprecedented SPR sales should help bridge the time until then, loosening balances sooner, according to Citi