Oil can see a test of the $90 boundary – Citibank

Citi analysts upgrade their forecast for oil and expect WTI to trade at $85 with potential to see spikes to $90.

Tighter oil markets open up to spillover from tight natural gas/power this winter

“We revise the oil prices outlook up from 4Q’21 due to higher demand, lost supply, gas-to-oil switching and price contagion this winter, bringing inventories even lower before stock builds after 2Q’22.”

“We revise 4Q’21 price up to $85, with prices potentially at $90 at times. However, high supply could see prices ease after winter.”

“We expect shortages on supply chains (production, transport) may plague energy markets all winter, where prices could remain volatile.”