Crude oil inventory drawdowns, supply outages and oil worker strikes are happening all over the world and are likely to prove beneficial to oil prices this year, the head of European energy research at Citigroup said on Wednesday.
"We stayed bearish through all of last year but starting early this year you really started to see oil supplies really getting whacked by the low oil price. And yes you see U.S. declines, but you see (the same) in Azerbaijan, you see it in Mexico, you see it in China, you see a pretty broad-based, widespread declines settling in," Seth Kleinman told CNBC on the sidelines of the Institute of International Finance summit in Madrid.
On Tuesday, Citigroup said the worst was over for the beleaguered oil market, which has seen prices tumble from $114 a barrel in mid-2014 to around $26 a barrel in early 2016 due to a glut in supply and the failure of demand to keep pace. Citi upped its forecasts for Brent to reach $65 a barrel in 2017.