The oil rally is 'for real' and should continue into year-end - Citi

In an interview with CNBC late-Monday, Citigroup's, Ed Morse, Global Head of commodities research, noted that the oil price rally is "for real" and is being driven by fundamentals and financial positioning.

Key Quotes:

"We think it's for real."

"We're in the middle of a bit of a sell-off, maybe even testing the $50 level for WTI, but the sell-off is profit-taking more than anything else, and the momentum in the physical markets, joined by the momentum in the financial markets, really point to a higher price between now and the end of the year."

Energy markets are going to be "in the driver's seat" for the rest of the year after metals and other commodities led the rally in the first two months of the third quarter.

"We're seeing inventories draw."

"Finally, the market is recognizing that these draws in inventories of products and crude oil combined are for real and they're going to last through the end of the year. Maybe next year is a different story, but this year looks quite positive from now until the end of December."