Oil Is `Trade of the Year' for Citigroup

Stick with oil, it could be the “trade of the year,” according to Citigroup Inc. “There will be an initial wave of supply from Iran, but once that’s done, it will be flat and I think that’s when you start seeing opportunities for oil to turn,” Ivan Szpakowski, an analyst at Citigroup in Hong Kong, said Friday. “Part of the reason oil is the trade of the year is because it’s going to have such a broad effect, it’s going to take a lot of asset classes up with it.” A decline in U.S. oil output will help rebalance the global market in the second half of the year, Dominic Schnider, the head of commodities and Asia-Pacific foreign exchange at UBS’s wealth-management unit in Hong Kong, said earlier this month. Schnider correctly predicted Brent would drop near $30 a barrel. “Within the next one to three months, that’s when investors should be looking for the opportunity to get in,” Szpakowski said. (VIEW LINK)