According to Citigroup Inc., Brent crude oil prices may face additional downward pressure, with the investment bank forecasting potential declines toward the $60-per-barrel level before the year concludes. The projection reflects expectations that supply concerns tied to disruptions in the Strait of Hormuz—a critical chokepoint for global crude shipments—will continue to fade as geopolitical tensions moderate.
Citigroup's bearish outlook aligns with a growing consensus among energy analysts and financial institutions that have recently lowered their oil price forecasts. Market participants are reassessing risk premiums previously built into crude valuations, suggesting that the earlier supply shock fears may be overpriced relative to current fundamentals.
The potential move lower would represent a significant shift from recent price levels and underscores the sensitivity of crude markets to geopolitical developments in key energy-producing regions. Whether such declines materialize will depend heavily on developments in the Middle East and broader macroeconomic conditions affecting global energy demand.
