Citi: Oil Could Sink to $60 as Hormuz Traffic Normalizes
Citigroup said normalizing Hormuz traffic and weaker physical markets could push Brent to $60 to $65 a barrel by year-end.
- On Friday, July 3, Citigroup Inc. analysts predicted Brent crude will decline to $60 a barrel by year-end as disruptions in the Strait of Hormuz ease following the US-Iran truce.
- Tehran and Washington agreed to a memorandum of understanding, or MOU, to pause hostilities, with incentives to de-escalate outweighing alternatives for the US, Iran, and the Middle East.
- Shipping volumes through the Strait increased to 7 million barrels daily, contributing to Brent sinking 30% during the second quarter as global energy markets adjust.
- "Fundamentals are rapidly reasserting themselves," Citigroup analysts including Francesco Martoccia said, while Goldman Sachs Group Inc. predicts the global market will swing into oversupply as traffic through Hormuz recovers.
- Morgan Stanley warns of a potential glut, prompting recommendations to sell into summer rallies, as analysts note the initial period is "expected to be noisy as shipping routes normalise.
19 Articles
19 Articles
Citi Says Oil May Slump to $60 as the Hormuz Shock Fades Away
Citi: Oil Could Sink to $60 as Hormuz Traffic Normalizes
Brent Crude prices could plunge to as low as $60 per barrel by the end of the year, says Citigroup, which expects flows through the Strait of Hormuz to soon normalize and the U.S. and Iran to reach a deal in the coming months. “We continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year,” Citi analysts said in a note carried by Bloomberg. “We expect the MOU to hold and turn into a d…
Finantsfirma Citigroup analütikud eeldavad, et USA ja Iraani relvarahu püsib ning leivad seetõttu, et rahvusvahelise võrdlusaluse Brenti toornafta hind langeb aasta lõpuks 60 dollarini barreli kohta.
Times of India
The Economic TimesCiti sees brent crude sliding to $60/bbl as supply fears ease
Geopolitical tensions easing around the Strait of Hormuz are expected to drive Brent crude prices down to $60 a barrel by year-end, according to Citi. Global energy markets are normalizing, with shipping resuming and Gulf producers increasing output. Despite this, Chinese buyers remain absent, and inventories are lower than anticipated, suggesting a potentially uneven recovery. Other banks share this outlook, anticipating a return to market surp…
Coverage Details
Bias Distribution
- 60% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
