Oil with more upward than downward movements

Edward Morse, the global leader of the Citi Group's research group, has given bullish prospects to global oil markets on Sunday, saying current stocks are at a "constructive" level.

Crude oil futures have risen in recent months, with BRENT and WTI rising by more than 20% since early 2019. Brent is holding $ 70 a barrel on Friday and WTI is traded at about $ 63. Morse believes that even stronger growth is expected as supply from the Iranian and Venezuelan markets and the OPEC oil cartel are down.

One variable is whether the President Donald Trump administration will extend sanctions waivers on eight countries importing Iranian oil and he has until May 2 to decide. Morse believes that the focus for the U.S. will be sanctions and Venezuela and this would likely see "kinder" actions on those importing Iranian oil.

Donald Trump has repeatedly criticized OPEC and its largest producer for trying to raise oil prices by cutting production.

In this line of thought, the 15-member organization has reached an agreement with non-OPEC producers, including Russia, to cut oil production in December last year in response to falling prices. Restrictions on production by the so-called OPEC + group played an important role in the recovery of the oil market this year.

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