Citi says oil could climb to $90 as reserves deplete this winter

The bank, which raised its Brent oil forecast for the fourth quarter to $85, said inventory could decline to its lowest level on record in terms of covered days by the end of the year. Consumption increases by 1 million barrels a day from consumers switching from natural gas to oil-based products amid rising energy prices.

Brent oil is already trading near $85 a barrel, while West Texas Intermediate has hit its highest level since 2014 as traders gear up for higher levels of consumption amid the global energy crisis. At the same time the Organization of the Petroleum Exporting Countries and its allies are gradually returning supplies to the market.

While the group sticks to its plan to add 400,000 barrels per day of supply for now, it may begin doubling its rate to 800,000 barrels per day under pressure from major consumers such as the US, China and India. According to Citigroup.