Citi: Oil prices likely stuck between $40 and $60 for next 5 years with some shocks along way
Citi’s commodities research team has tempered its outlook for oil prices over the next five years, but it sees room for price shocks if oil supply disruptions increase dramatically or fall off significantly in the coming years.
The bank had projected in February that U.S. crude prices would likely trade mostly in a range of $40 to $65 from 2017 to 2022. It now sees prices trading at $40 to $55 a barrel in the 2018 to 2020 period and then $50 to $60 through 2022.
To be sure, the $60 cap through 2022 implies “smooth sailing” for oil markets during that time period, but Citi sees room for significant price volatility…