Citi VelocityShares 3x Long Crude Oil S&P ETN (UWT)

[benfrankledger]

$BP $DWT BP CEO Bob Dudley sees the oil rally cooling off, telling Reuters that crude oil likely will fall to $50-$65/bbl due to surging shale output and OPEC’s capacity to boost production.

Trade dislocations and sanctions "will have impacts here and there but the overall economic growth rates appear to be not overheated," Dudley says, adding that U.S. sanctions on Iran likely will reduce crude exports from Iran by the lower end of anticipated guidance of 300K-1M bbl/day.

Markets so far have been able to absorb oil’s rise without hurting demand growth, but Dudley says a sustained crude price above $80/bbl would be unhealthy.