Seth Kleinman, European head of energy research at Citigroup recently released his oil outlook for 2012. He says inventories will remain tight and demand will continue to push higher. The risk of another global supply disruption creates substantial upside risk. The WTI/Brent spread will narror to $7-$8 with Brent averaging $110 in the coming year with a risk of $120. He cites $120 as the “pain point” at which it starts to constrain global GDP. His biggest fear is supply disruption coming from Iran or Iraq…
You can see his recent Bloomberg interview here:
Source: Bloomberg TV
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