Citi analysts upgrade their forecast for oil and expect WTI to trade at $85 with potential to see spikes to $90.

Tighter oil markets open up to spillover from tight natural gas/power this winter

“We revise the oil prices outlook up from 4Q’21 due to higher demand, lost supply, gas-to-oil switching and price contagion this winter, bringing inventories even lower before stock builds after 2Q’22.”

“We revise 4Q’21 price up to $85, with prices potentially at $90 at times. However, high supply could see prices ease after winter.”

“We expect shortages on supply chains (production, transport) may plague energy markets all winter, where prices could remain volatile.”

This article was originally published by Fxstreet.com.Read the original article here.

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