Citi Says Get Ready for an Oil Squeeze
- Some nations including Iraq may be pumping at maximum capacity
- Supply gap could emerge in market as early as 2018: Ed Morse
Franklin Templeton Sees Oil Prices Staying Firm
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Those in the oil market fearing a flood of OPEC supply next year will probably be better off preparing for a shortage, according to Citigroup Inc.
Five countries in the group -- Libya, Nigeria, Venezuela, Iran and Iraq -- may already be pumping at their maximum capacity this year, Ed Morse, the bank’s global head of commodities research, said in an interview. Rather than a surge in output, there’s a risk of a market squeeze emerging as early as 2018, driven by those nations because of weaker investment in exploration and development, he said.