Citi bullish on oil, sees Brent rising 28% to $78 within 3 months

Forget the trade war and global growth pessimism. Citigroup Inc. is sticking to its target of Brent oil rising to $78 a barrel in three months.

Supply risks, rising demand over the northern summer, light fund positioning and a tight physical market are some of the reasons cited by the bank for its optimism in a note by analysts including Ed Morse, global head of commodities research. Citi’s forecast implies a 28 per cent increase from current levels.

“Underpinned by rising trade tensions, the global economic picture has clearly deteriorated since May,” Morse wrote in the note released Tuesday. “Yet this macro