Citi: "Black Gold" a Better Hedge Than Gold

The video discusses the current state and future outlook of the oil market. It highlights the high market positioning by money managers and the role of oil as a hedge against Brexit. Current concerns include high gasoline inventories and refining margins. However, a long-term bullish scenario is anticipated due to significant cuts in capital expenditures and project cancellations. Brexit is seen as having minimal impact on global oil demand, with a potential future where demand overtakes supply.

What is the current sentiment in the oil market according to money managers?

• Bearish sentiment is dominant.

• Neutral sentiment prevails.

• Sentiment is unpredictable.

• Bullish sentiment is already priced in.

How is oil positioned as a hedge against Brexit?

• As a hedge with no specific timeframe.

• As an immediate hedge.

• As a medium to long-term hedge.

• As a short-term hedge.

What are the immediate concerns affecting the oil market?

• Surging oil prices.

• High gasoline inventories and declining refining margins.

• Rising refining margins.

• Increasing crude demand.

What has been the impact of reduced capital expenditures on the oil market?

• It has created a potentially bullish scenario for the future.

• It has increased global oil demand.

• It has led to an oversupply of oil.

• It has stabilized oil prices.

What role does Brexit play in the global oil demand according to the transcript?

• It has no impact on global oil demand.

• It is a major driver of global oil demand.

• It slightly influences global oil demand.

• It significantly reduces global oil demand.