Citi's Morse: Oil in $70 Range a Fair Value by Year End

The video discusses the pessimistic outlook on oil demand due to factors like the removal of Russian oil and changes in refinery capacity. It highlights a decrease in expected demand growth and the impact on the petrochemical industry. The discussion also covers the fair value of oil, considering market dynamics and cost structures, suggesting that the current high prices may not reflect true market value.

What was the initial expected increase in oil demand at the beginning of the year?

• 2.2 million barrels per day

• 3.6 million barrels per day

• 1.8 million barrels per day

• 4.0 million barrels per day

Which industry was expected to drive oil demand growth but showed low demand instead?

• Petrochemical industry

• Agricultural industry

• Textile industry

• Automobile industry

What is one of the reasons for the low demand growth for diesel?

• Government regulations

• High production costs

• World staring at recession

• Increase in electric vehicles

What is the current high price for Brent oil mentioned in the discussion?

• $70

• $90

• $120

• $150

According to the discussion, what is the more likely fair market value range for oil?

• $50 to $60

• $70 to $80

• $90 to $100

• $110 to $120