Citi’s chief commodities analyst Ed Morse says oil prices have peaked for the year.
First, he says, we are already at or beyond peak driving season, and prices will soon come down.
“We think prices have hit their peak for the year, if not exactly today, certainly in Q3,” he said.
WTI currently sits at $104.64, while Brent is about $107.
Brent is up about $7 since mid-June but has subsided in recent days as Middle East unrest subsided.
WTI has surged about $10 over the past few weeks, and Morse explained why.
Over the last six weeks we have had this gush of oil coming through the pipeline system, and it’s made our prices reach a world equilibrium.
So our prices have gone up; world prices have been steady or are actually going down.
And he says this about future production:
The U.S. is the fastest growing oil and [natural] gas producing country in the world,” Morse says. “We’ve now gone above Russia as the largest [natural] gas producing country… all of this will lead to softer and softer markets and lower prices in the years to come.
Watch the whole clip below:
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