Citigroup sees oil surging to mid-US$60s by year-end

Positive outlook: A file picture showing oil rig operators preparing to install a bit guide on the floor of a Royal Dutch Shell Plc oil rig near Mentone, Texas. While US shale output may come ‘roaring back’ amid higher crude prices, production curbs by Opec should help offset the increase. – Bloomberg

SINGAPORE: Citigroup Inc joined Goldman Sachs Group Inc in backing commodities, saying it’s the season to have faith in raw materials and oil will probably rally to the mid-US$60s by the end of the year.

While US shale output may come “roaring back” amid higher crude prices, production curbs by the Organisation of Petroleum Exporting Countries (Opec) and its allies should help offset that increase over the next six to nine months, Citi analysts including Ed Morse and Seth Kleinman wrote in an April 17 report.