Remarks by Citi's global head of commodities research, Ed Morse

  • The market is very tight, supply increase of 400k bpd will turn out to be a pittance
  • Demand is significantly higher, despite the pandemic still rampant
  • Oil prices likely to climb much further by the time summer is over

More reaction to the OPEC+ agreement over the weekend, as the bloc formalises a deal that will see output cuts eased starting from August.

Oil continues to sit lower by around 1% at $71.08 to start European trading, with key daily support still intact around the $70.80-10 region before $70.00 comes into play.