Citi forecasts oil prices could drop to $60 per barrel next year if OPEC+ doesn't increase production cuts.
- Then, from $60, prices could fall further to $50 before rebounding, influenced by financial flows.
- Geopolitical tensions are having minimal long-term impact on oil prices, with weaker rebounds after each spike.
- Markets now see these tensions as opportunities to sell during temporary price increases.
- Citi warns OPEC may lose market confidence in defending $70 oil if output cuts aren’t extended.
- Citi has issued similarly negative forecasts before, which have sometimes been wrong.
- In June, Citi predicted a $60 Brent crude by 2025, advising producers to hedge and investors to take short-term bearish positions.
- Oil prices fell to a nine-month low on concerns about demand and potential supply growth.
- OPEC+ is reconsidering easing production cuts due to the price drop, with Brent crude below $73 and WTI below $70.
The note from Citi was covered by various outlets, summary above ICYMI.
Earlier:
- Crude oil price dips despite OPEC+ considering supply hike delay
- OPEC+ lifeline falls flat, WTI settles down $1.14
Just a few moments ago we had oil inventory data:
Brent catching a bid on it:
