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China has 'peaked' in diesel demand, says Citi’s Ed Morse
  + stars: | 2023-10-27 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina has 'peaked' in diesel demand, says Citi’s Ed MorseEd Morse, Citi global head of commodities, joins ‘Squawk on the Street’ to discuss what's ahead for oil prices, why he believes China has peaked in diesel demand, and more.
Persons: Ed Morse Ed Morse, Squawk Organizations: China, Citi Locations: China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOil prices are now at the mercy of financial flows, says Citi's Ed MorseEd Morse, Citi Research head of global commodities, joins 'Squawk on the Street' to discuss how the oil supply and demand dynamic changes with a war between Israel and Hamas, his expectations on where prices should go from here, and more.
Persons: Ed Morse Ed Morse Organizations: Citi Research, Hamas Locations: Israel
The escalating conflict between Israel and Hamas threatens to push oil prices higher by straining relations between major oil-producing countries in the Middle East, according to Wall Street experts. Oil prices rose Monday after the weekend attacks, though they remain below recent highs from two weeks ago. Saudi Arabia One key player on the sidelines of the war is Saudi Arabia. Iran The other major oil producer tied into the conflict is Iran, the chief backer of Hamas. Bank of America's Doug Leggate said in a note to clients that the United States could release oil from its strategic petroleum reserve if prices spike.
Persons: Goldman Sachs, Daan Struyven, Struyven, Helima Croft, Antony Blinken, Goldman's Struyven, Ed Morse, East . Bank of America's Doug Leggate, Leggate, — CNBC's Michael Bloom Organizations: Texas, Wall Street, Israel, Saudi, RBC Capital Markets, Hamas, East . Bank of America's Locations: Israel, Gaza, East, Saudi Arabia, Saudi, Iran, U.S, Lebanon, United States
But there are signs that both supply and demand will bring prices back down in the coming months. AAA reported this week that the average price for a gallon of gas in the US was $3.88. AdvertisementAdvertisementAn atypical spike in pricesThe increase in gas prices is unusual, as we typically see some relief after the summer surge as demand wanes. If true, the worries about the impact of rising gas prices on consumer spending and inflation are overblown. AdvertisementAdvertisementIn recent years, with oil prices closer to $70 a barrel, gas prices have typically been close to $3 a gallon.
Persons: Mohamed el, Saudi Arabia's, Mohamed Oun, there's, Jorge León, Mike Wirth, we've, hasn't, Wirth, Grace Smith, David Kelly, We're, Kelly, Citi's, Ed Morse Organizations: Service, AAA, Allianz, Saudi, Reuters, Rystad Energy, US Strategic Petroleum Reserve, Biden, Strategic Petroleum Reserve Energy Department, Strategic Petroleum Reserve, Chevron, Bloomberg, Denver, MediaNews, Getty, Morgan Asset Management, Citigroup, CNN Locations: Russia, Saudi Arabia, Wall, Silicon, California, Clearwater Beach, Tampa , Florida, Libya, Ukraine, Brazil, Canada, Venezuela, Guyana
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Fragile Five' oil producers will have more oil in market than demand, says Citi's Edward MorseEd Morse, Citi Research head of global commodities, joins 'Power Lunch' to discuss Morse's thoughts on the supply and demand picture for crude oil, why Morse isn't more concerned with the crude oil picture and much more.
Persons: Edward Morse Ed Morse, Morse Organizations: Citi Research
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's oil demand is unlikely to have another huge increment by the end of 2023: Citi's Ed MorseEd Morse of Citi doesn't see much upside in oil price this year as demand growth is limited and Saudi Arabia and Russia are likely to reverse production cut in October.
Persons: Ed Morse Ed Morse Organizations: Citi Locations: Saudi Arabia, Russia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOil prices will come down with incremental supply from U.S. and Canada in Q4, says Citi's Ed MorseEd Morse, Citi global head of commodities, joins 'Squawk on the Street' to discuss why oil prices will climb higher than $80 a barrel, if retail gasoline prices are a threat to the consumer, and more.
Persons: Ed Morse Ed Morse Organizations: Citi Locations: U.S, Canada
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCiti's Ed Morse explains why he's bullish on oil but bearish on natural gasEd Morse, Citi global head of commodities, joins 'Squawk Box' to discuss the oil and natural gas market, why he's bullish on oil and bearish on natural gas for the summer season, and more.
Persons: Ed Morse Organizations: Citi
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOil supply has been more robust than forecasted in 2023, says Citi's Ed MorseEd Morse, Citi's global head of commodities, joins 'Squawk on the Street' to discuss the outlook for oil prices in the second half of the year, oil demand growth related to China's reopening, and the U.S. ramping up its oil supplies.
Persons: Ed Morse Ed Morse Organizations: Email, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOPEC+ meeting an "ultimate failure" for Saudi Arabia in bringing members together: CitiEd Morse from Citi discusses the outcome of the OPEC+ meeting and what he sees as 'disappointing' oil demand from the world's largest consumption markets.
Persons: Citi Ed Morse Organizations: Citi Locations: Saudi Arabia
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailLower-than-expected demand during Memorial Day weekend driving down oil prices: Citi's Ed MorseEd Morse, Citi global head of commodities, joins 'Closing Bell Overtime' to break down oil's recent drop below $70 per barrel.
Persons: Ed Morse Ed Morse Organizations: Citi
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina is unlikely to continue importing oil at the current level, Citi saysEd Morse of the investment bank says oil imports from China may fall even as demand rises from now till the end of the year.
Oil prices saw three consecutive weekly declines last week, marking the longest losing run this year. The recent slide in oil prices is starting to bottom out, according to analysts who predict that a more significant pickup in the coming quarters is in the cards. Oil prices saw their third consecutive weekly decline last week, marking the longest losing run this year. The production declines prompted some analysts to warn prices could surge to triple digits, which failed to materialize. "We're looking more positively at the second and third quarter than what's happened in the first quarter," Morse said.
Watch CNBC's full interview with Citi's Ed Morse
  + stars: | 2023-04-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Citi's Ed MorseEd Morse, Citi global head of commodities, joins 'Squawk on the Street' to discuss recent oil price action, if OPEC will cut production further, and more.
We're close to a bottom in oil prices, says Citi's Ed Morse
  + stars: | 2023-04-28 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're close to a bottom in oil prices, says Citi's Ed MorseEd Morse, Citi global head of commodities, joins 'Squawk on the Street' to discuss recent oil price action, if OPEC will cut production further, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe prospect for oil prices will be on the downside rather than the up, says Citi's Ed MorseEd Morse, Citi global head of commodities research and managing director, joins 'Power Lunch' to discuss services leading China's recovery, declining U.S. demand for oil, and the global natural gas export market.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere's more oil than people think, and demand is significantly weaker: Citi's Ed MorseEd Morse, Citi global head of commodities research and managing director, joins 'Squawk Box' to discuss if Morse ties the move in oil to the Federal Reserve, why a bump in global oil demand hasn't driven prices higher, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBrent oil prices could go down to the 'low 70s' by year-end, Citi saysEd Morse of the investment bank says "overall, we think the market is going to be oversupplied this year despite … the disruption risk that confronts the market at the moment."
Keeping a lid on prices Oil futures fell Wednesday amid signs that China is moving ahead to normalize its economy, with the removal of border and travel restrictions. Russia's invasion of Ukraine was the biggest shock to the oil market in the past year, sending prices spiking in the first quarter. Under some scenarios, a strong reopening in China could drive oil close to about $120 if supply is short. The latest efforts to penalize Russia were Europe's ban on seaborne oil, as of Dec. 5, as well as a G-7 price cap on the price Russia can receive for its oil. Morse said more oil supply is coming on line from the U.S. and other Western Hemisphere producers in 2023.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailOil supply will outpace demand going into 2023, says Citi's Ed MorseEd Morse, Citi global head of commodities research and managing director, joins 'Squawk on the Street' to discuss Morse's 2023 forecast for oil, what happens to the price of oil if the war in Ukraine ends and more.
But first, Elon Musk staked his Twitter leadership on a poll and it closed just minutes ago. Elon Musk topped off a turbulent week by launching a poll asking Twitter users whether he should quit as CEO. After SEC filings showed Musk sold about $3.6 billion of Tesla stock, its share price tumbled more than 15% amid a growing view that Twitter is becoming a distraction. This is a developing story and Tesla stock is currently up almost 5% in premarket trading. ICYMI: Phil Rosen, your usual host of this newsletter, discussed the "stunning" state of America's oil industry with Citi's Ed Morse.
Phil Rosen: What will energy markets look like in 2023, and what's your oil price forecast? How has Russia's role in energy markets changed since it invaded Ukraine? So we had companies — even before governments got involved — saying they were not going to import Russian oil and gas. How has the US's role changed in global energy markets this year? EM: Energy markets have been very concerned about it, but their concern is slowing.
In an interview with Insider, Citi's Ed Morse said he expects Brent crude to finish 2023 around $76 a barrel. Next year, energy markets will see both a supply uptick and an easing of global demand, Morse said. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. In February 2023, Russia will face new sanctions on Russian refined fuels, such as diesel, which raises some concerns, Morse said, but worries are easing as other nations ramp up production. "The drop in revenue from natural gas exports being lost to Europe had no replacement whatsoever because there was no other place to sell the gas to, so revenue from gas exports plummeted," he said.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe expect Chinese oil demand to grow next year, says Citi's Ed MorseEd Morse, Citi global head of commodities research, joins 'Power Lunch' to discuss what happened with today's oil markets, if he's bearish on WTI crude and more.
Aimee Dilger | ReutersOil prices are defying expectations and are barely higher on the year, as the outlook for oil demand continues to deteriorate for now. Higher oil prices next year? Analysts expect oil prices to increase next year. Morse said market dynamics have changed and oil demand growth will be smaller as a percentage of gross domestic product. "We are also looking for the peak of oil demand in this decade.
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