Citigroup Lowers Oil-Price Forecast, Cuts Targets for Producers
>>>Pissants. I attended a conference a couple weeks back wherein banking specialist Chris Whalen stated that the government was going to control Citi and JP Morgan within nine months.<<<
By Paul Dobson
Nov. 13 (Bloomberg) -- Citigroup Inc. cut its forecast for crude oil prices for the second time in six weeks, triggering an average 10 percent reduction in the bank's share-price targets for oil producers and a rating downgrade for Total SA shares.
Citigroup reduced its forecast for crude oil prices in 2009 to $65 a barrel from $90 a barrel, and trimmed its long-term price assumption to $85 a barrel from $100 a barrel, it said today in an investor note.
``It's only six weeks since we last lowered our macro forecasts, yet here we are slashing another $25 a barrel off our near-term estimates,'' Citigroup's analysts said in the note. ``We cannot discount further falls in oil prices, which may expose the sector to profit taking.''
The price correction, with oil falling below $55 a barrel today, the lowest in 21 months, may be positive for integrated oil majors in the longer term as the balance between supply and demand tightens after project deferrals, Citigroup said.
It cut its recommendation for Total, France's largest oil company, to ``hold'' from ``buy.'' |
