Anticipation on crude going forward: Citi outlook

Amid recessionary pressure and hence the weak demand outlook, there is seen global crash in some of the commodities and one of them happens to be oil too. Nonetheless as of writing this copy, Brent benchmark is still up above $100 per bbl.

How oil price is moving?

Oil prices are rather being bumpy similar to other commodities and asset classes. As the recessionary fears surfaced and demand outlook weakened, oil prices in the previous day's trade took a knock by up to $10.

Also, the losses were triggered after reports suggest that Saudi Arabia announced a hike in price for all its crude grades in August for Asian market.

Another trigger for the losses in crude has been the firming dollar which on the last session was pushed to 20-year high on weak economic outlook. This is as there is less of buying by the non-US companies in case the dollar strengthens.

As per an Investing report, WTI crude cracked over 8% to $99.12 per barrel. The U.S. crude benchmark had finished June down more than 7%.

But last in today's session, there has again been some push lent to the commodity with prices still maintained above $100 per barrel.

Anticipation on crude going forward: Citi outlook

As per the Citigroup forecast, if the economic gloom persist and there is a hit on the demand thencrude is seen to hit $65 by end 2022 and $45 per bbl by the end of 2023.