Citi: Here Comes The V-Shaped Rebound In Oil

Start buying oil.
That’s not only this morning’s recommendation by Dennis Gartman but, as this afternoon, also Citi’s commodities team (led by OPEC’s impressario Ed Morse) which moments ago issued a report according to which crude oil markets will not only bottom, but more importantly, “investors should position now for a potential V-shaped rebound in crude oil prices, as price risk seems asymmetrically skewed to the upside.”
Do two wrongs make a right? But we digress…
Citi explains the recent collapse (which it did not in any way anticipate as it was bullish all the way into a bear market), by noting that WTI flat price has sold off another ~5% this week, as bearish sentiment continued to prevail among oil market participants. However, it counters, “both weekly and monthly storage data are pointing to a tighter market by end-2017, and Citi expects global oil stocks to draw ~200-m bbls to year-end. While it is possible for prices to dip even lower near-term, we do not view this as sustainable, and once market sentiment turns, prices could rally sharply.”
Some additional observations from uber-bullish Citi on the crude vol surface:

This post was published at Zero Hedge on Jun 22, 2017.