Citi says oil should be around $70 as demand drops and recession looms
Brent crude oil is overvalued and should fall significantly as demand drops and recession fears loom,...
Brent crude oil is overvalued and should fall significantly as demand drops and recession fears loom, according to Citi's global head of commodity research.
"I'd say it's more in the $70 range than it is in the $120 range," Ed Morse said in an interview with Bloomberg on Tuesday. "If you look at the fair value for oil, look at the flowing curve. It's exaggerated."
Brent crude has surged more than 50% year to date after Russia's invasion of Ukraine and Western sanctions on Moscow sent energy prices soaring. On Tuesday, oil jumped to a two-month high of more than $123 a barrel after the European Union agreed to ban most Russian oil imports as part of its sixth round of sanctions.
Morse said Citi's demand expectations for oil had dropped sharply this year as fears of a recession took hold. The Wall Street giant cut its demand expectations by 1.4 million barrels.
U.S. stocks edging up as a new month and Fed ‘quantitative tightening’ kick off
U.S. stock indexes opened higher on Wednesday, led by technology stocks, at the start of a new month...
U.S. stock indexes opened higher on Wednesday, led by technology stocks, at the start of a new month of trading, with the quarterly earnings reporting season winding down, while the Federal Reserve begins reducing its nearly $9 trillion balance sheet.
The Dow Jones Industrial Average DJIA, 0.26% gained 274 points, or 0.8%, to 33,239.
The S&P 500 SPX, 0.50% rose 31 points, or 0.8%, to 4,164
The Nasdaq Composite COMP, 1.16% were up 137 points, or 1%, to 12,215
On Tuesday, the Dow industrials DJIA, 0.26% fell 222.84 points, or 0.7%, to close at 32,990.12, snapping six-straight sessions of wins. The S&P 500 SPX, 0.50% fell 0.6% to 4,132.15, and the Nasdaq Composite COMP, 1.16% finished down 0.4% at 12,081.39, with both indexes snapping three consecutive days of gains.
The energy sector is set for a higher start, supported...
The energy sector is set for a higher start, supported by strength in the underlying commodities and the major market futures. U.S. stock futures edged up after Salesforce released earnings better than analysts had expected and as investors await to digest private jobs and factory activity data.
WTI and Brent crude oil are up in early trading as European Union leaders agreed to a partial ban on Russian energy and as China ended its prolonged COVID-19 lockdown in Shanghai. The European Union’s decision on Monday to cut 90% of oil imports from Russia by the end of the year has supported oil prices on both sides of the Atlantic.
Russian Gas Producer Gazprom Cuts Supply to Ørsted, Shell Energy
Russian gas producer Gazprom has cut off gas supplies to Denmark’s Ørsted and to Shell Energy for...
Russian gas producer Gazprom has cut off gas supplies to Denmark’s Ørsted and to Shell Energy for its contract to supply gas to Germany, it said on June 1, citing the companies’ failure to make payments in rubles.
Gazprom has already halted supplies to Dutch gas trader GasTerra, as well as to Bulgaria, Poland and Finland after their refusal to pay for gas in Russian rubles, as demanded by Moscow in response to Western sanctions over the Russia-Ukraine conflict.
German, Italian and French companies, however, have said they would engage with Moscow’s payment scheme to ensure they can maintain supplies.
Tullow Oil to Buy Capricorn Energy in $827 Million All-share Deal
Tullow Oil will acquire Capricorn Energy in an all-stock deal worth...
Tullow Oil will acquire Capricorn Energy in an all-stock deal worth 656.9 million pounds (US$826.7 million), keeping a focus on African reserves amid soaring energy prices.
Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 Tullow shares for each share they hold, the companies said on June 1. Reuters calculated the value.
