Oil’s Unstoppable Rise: Another 1% Gain in an Incredible Run

Citigroup’s Changing Tune on Crude Oil

Citigroup hasn’t quite thrown in the towel on oil yet. In August, they were saying crude would fall after summer ended and could hit $68/barrel. Now they say it could hit $100 in a ‘technical’ move while still maintaining that the oil market is headed for oversupply. “$90 prices look unsustainable,” said the team led by Ed Morse that has been notoriously bearish.

Today, November WTI is up $0.94 to $90.98 while the October contract, which is thinning out, is up $1.03 to $91.82.

It’s no secret that oil prices have been on an incredible run as of late. Despite predictions of a fall in prices, the market continues to rise, challenging the expectations of even the most experienced analysts.

The Impact on Me

As a consumer, the rise in oil prices will likely mean an increase in gas prices at the pump. This will directly impact my budget and could lead to higher costs for goods and services that rely on transportation.

The Impact on the World

The rise in oil prices could have far-reaching effects on the global economy. Countries that rely heavily on oil exports may see a boost in revenue, while those that are net importers of oil may face economic challenges. Additionally, higher oil prices could also impact industries such as manufacturing and transportation, leading to changes in production costs and consumer prices.

Conclusion

Oil’s unstoppable rise may have caught many by surprise, but it serves as a reminder of the volatility and unpredictability of the energy market. As Citigroup revises its predictions and oil prices continue to climb, the impact will be felt both on a personal level and on a global scale. It remains to be seen how this trend will play out in the coming months, but one thing is certain – the world of oil is anything but predictable.