Oil prices should fall as a result of increased supplies from countries other than OPEC+ leaders such as Saudi Arabia and Russia, Citigroup Inc. said. While technical traders and geopolitical risks could push prices above $100 briefly, additional supply means “$90 prices look unsustainable,” analysts including Ed Morse wrote. This, in turn, should lead to lower prices for key fuels such as gasoline and diesel. Brent crude rose to $95 a barrel on Monday as production cuts led by Saudi Arabia and Russia contributed to depletion of supplies at a time when global consumption remained resilient. Premiums for physical barrels have also risen as refiners try to make the most of strong profits. But this will not happen for several reasons. The most important of them is that these countries have repeatedly stated that they will not be able to provide for everyone due to a lack of production capacity. The only exception could be a global crisis or another pandemic.
