“Citigroup”: Oil may rise to $90 due to Middle East tensions

Oil rose to an 8-week high after US inventories fell much more than expected, while China unveiled additional stimulus.

According to Bloomberg, Citigroup warned that the price of Brent crude could rise to $90 a barrel if tensions escalate in the Middle East, although the bank warned that this was not its basic forecast.

For his part, Ole Hansen, head of commodity strategy at Saxo Bank, said that the US inventory data on Wednesday “appears to have been the impetus behind what appears to be a technical breakthrough.” “A series of higher lows over the past month has shown how limited selling appetite is due to fears of geopolitical escalation.”

Oil is now showing signs of rising, outside the narrow range in which it has traded all year. The geopolitical tensions in the Red Sea that have roiled global trade have so far been largely offset by concerns that crude oil supply growth will remain strong from non-OPEC producers.