Oil and Gas

Ed Morse: Don’t expect $100 oil anytime soon

Crude rebounds after Friday's drop

It will take a lot for oil prices to trade in the $100-per-barrel neighborhood in the near future, Ed Morse, head of global commodity research at Citigroup, said Monday.

"We'd have to see a reversal in trends in global GDP growth and, more importantly, in global petroleum demand growth," Morse said in a CNBC "Squawk on the Street" interview.

"We've seen the relationship between GDP growth and oil product demand widening considerably. For every 1 percent increase in global GDP, there's less of a percent increase in oil demand. That will weigh heavily on the markets," Morse added.

Crude prices have nearly halved since last year, with West Texas Intermediate oil trading at about $46 a barrel on Monday, while Brent crude traded at about $48.

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Morse added there are two key factors keeping oil prices down.

"There is so much more oil that can be produced at lower prices, and the world has a big abundance of these new, unconventional oils, particularly shale oil," he said. "[Also], "OPEC countries have a need to produce more and they'll be producing more."