Industrial Forex: Oil prices will fluctuate in this range, unless there is an "unexpected event"

Ed Morse, global head of commodities research at Citigroup Inc., said:Oil prices are unlikely to fall below $70 a barrel, but an "uncertain" event would be required to push prices above $90 a barrel.

Mr. Morse said in a television interview that Brent had found support around $70 a barrel because of several fundamentals. First, OPEC + does not want oil prices to fall below that level and has indicated it will cut production to keep prices stable. Another factor is the US commitment to replenish its strategic petroleum reserves at around $70 a barrel.

At the same time, considering the tight supply,Oil prices are unlikely to rise above $90 a barrelBut Morse pointed out,Extreme weather events, including hurricanes, could change the outlookIn addition, barriers to investing in fossil fuels and reduced demand are leading to more market volatility

Morse said the oil market would fluctuate between supply shortages and oversupply, but he said:

"The oversupply will not be so large that oil prices fall to $20 a barrel, let alone negative prices, and the undersupply will not be so large that oil prices rise above $100 a barrel, but it will mean volatility in the market."