Bullish Citi analysts call for crude oil to hit $70 by year end but elsewhere skepticism grows

by Dramelin 3:00 AM 0 comments

Crude oil prices could shoot up to $70 a barrel by the end of 2017 as supply and demand levels continue to rebalance in coming months, according to analysts at Citi.
Nearer-term, the research team has raised price estimates modestly by $5 to an average $55 per barrel for the first quarter and by $2 to an average $56 per barrel for the second quarter.
However, the impact of shale is hard to accurately predict given the lack of uniformity in the product says S&P Global Platt`s Ernsberger.
Looking beyond 2017, Citi`s optimism also fades on expectations that increasing numbers of shale producers will be enticed back into the market by more favorable pricing.
However, a close eye must be kept on delivery timetables, David Ernsberger, Global Head of Energy at S&P Global Platts, told CNBC`s Squawk Box on Tuesday.