Citigroup: Oil price will gradually decline this year

Baku. 9 February. REPORT.AZ/ The correction of oil prices in the world market continues and there is potential for further price cuts.

Report informs, the US's Citigroup analysts said.

According to analysts, oil market is approaching the season of weakening demand. Meanwhile, oil production in the US exceeded 10 mln. bbl/day and reached a historic record level.Although stability of oil-wells in the United States in recent times has made some traders more optimistic, but sharp increases in production can slow down long positions.

Citigroup said oil production in the United States can exceed $ 11 mln. bbl/day until the end of the summer. Energy Information Administration (EIA) of the US Department of Energy predicts production would hit $ 11 mln bbl/day limit in Q4.

Citigroup estimates that the average price for Brent oil will be $ 65/bbl in Q1, $ 58/bbl in Q2, $ 54/bbl in Q3 and $ 52/bbl in Q4.