Premium: A Bank is Very Bearish Oil Right Now
Housekeeping:
[EDIT: This report is at risk of removal- VBL]
In a report dated February 3rd, Citi has established and recommends that clients consider going short Oil in the Brent contract looking for an 18 to 20% move lower between now and the end of 2022. In the report they say:
We establish a bearish position on December 2022 (COZ2) ICE Brent futures targeting ~18-20% downside in 2H 2022.1
Here’s our analysis and potential ways to express the trade if you chose to do so.
Before You read any more. Please Read this:
We’re not recommending. We’re laying out some risks and analysis of their idea. We trade our own accounts and have no stake in what you do as a broker, bank, or counter-party to your execution. We have 30 plus years experience in the energy market as marketmakers, analysts, and hedge fund portfolio managers. About US
WHY BEARISH?
The eight page report makes the rationale for their case. Among their stated reasons are a combination of Central Bank policies…
