Oil prices could rise to $100 a barrel in the short term thanks to the latest developments out of Saudi Arabia and Russia, according to Citi.
That pushed U.S. crude oil prices top $90 a barrel for the first time since November 2022.
"Geopolitics could push oil over $100 for a short while," Edward Morse, Citi's global head of commodities, said in a note Monday morning.
"The Saudi appetite to withhold oil from market, supported by Russia maintaining a certain level of export constraint, points to higher prices in the short term."
However, he also noted that higher near-term prices could mean more downside next year, and that the current $90 level prices look "unsustainable" with faster supply growth than demand.
Persons:
Brent, Edward Morse, Morse, CNBC's Michael Bloom, Yun Li
Organizations:
Citi, West, Consumer
Locations:
Saudi Arabia, Russia, West Texas, Saudi, China