— This is the script of CNBC's news report for China's CCTV on February 11, Wednesday.
Brent crude fell about 3 percent on Tuesday, halting a three-session rally, after the International Energy Agency forecast that ample supplies will raise global inventories before investment cuts begin to significantly dent production.
Oil prices may fall to $20 and the "end" of OPEC may be near, according to a shocking report from Citigroup.
The move higher in oil since the end of last month was nothing more than short covering and a response to cuts by energy companies, wrote Edward Morse, one of the more influential analysts in the energy space.
WTI crude has surged 22 percent to almost $53 a barrel since falling below $44 a barrel on Jan. 29. Prices are still down 46 percent over the last six months. Citi's official forecast for when oil will end the second quarter (after that possible drop to $20) is now $35 a barrel, down from a previous forecast of $47 a barrel. WTI will then rebound to end the year at $57 a barrel. It will get back to $66 by the end of 2016, forecasts Morse.
In order to follow Citi's call, the ProShares UltraShort Crude Oil ETFand the PowerShares Crude Oil Double Short ETN are inversely correlated with the returns for crude.
[DANIEL HYNES / SENIOR COMMODITY STRATEGIST, ANZ] "WHEN YOU ARE LOOKING AT THE INDICATORS LIKE THE OIL PRICE IN THE U.S., AND WHAT LOWER PRICES IN GENERAL COULD BE DONE TO THE SUPPLY, SO THE PULLS BETWEEN THE FUTURE EXPECTATIONS AND WHAT WE ARE SAYING IN THE GROUND RIGHT NOW, WAS WE ARE GOING TO SEE THE HIGH LEVEL OF VOLATILITY AND REMAINING. AND FROM CERTAIN POINTS OF VIEW, WE SEE THAT FUNDAMENTALS ARE GONNA GET WEAKER IN THE SHORTER TERM, SO THAT'S THE REASONS FOR US TO MOVE TO THE DOWNSIDE FOR THE MOMENT."
While some oil importers are increasing oil reserves while the price is still low, Russia is looking for a reform.
[ANTON SILUANOV / FINANCE MINISTER OF RUSSIA] "ABSOLUTELY, THERE IS A PROFIT, WHY WAIT UNTIL TOMORROW? SO NOW THAT THE OIL PRICES HAVE FALLEN, ACCORDING TO OUR FORECAST THE PRICES WILL REMAIN LOW FOR A LENGTHY PERIOD OF TIME, WE NEED TO USE THE OPPORTUNITY TO RESTRUCTURE THE ECONOMY. WE'VE HAD THE SO CALLED DUTCH DISEASE OR SYNDROME, THAT THE ROUBLE HAVE WEAKENED, WE NEED TO SHIFT FROM COMMODITY INDUSTRIES AND A COMMODITY DRIVEN ECONOMY TO MORE MANUFACTURING INDUSTRIES, SO WE NEED AN ADDITION TO IMPORT SUBSTITUTION, WHICH IS A PRESSING TASK. WE NEED TO RESTRUCTURE OUR ECONOMY, SHIFTING FROM BEING OIL ORIENTED TOWARDS A DIFFERENT ARRANGEMENT."
Reporting from Singapore, I'm CNBC's Qian Chen.