Citi Lifts Brent Outlook but Still Sees Oil Falling in 2027

AI Summary

Citi has raised its third-quarter Brent crude oil forecast to $80 per barrel amidst ongoing conflict between the U.S. and Iran, which has disrupted oil flows through the Strait of Hormuz. Despite the extension of the war, Citi anticipates resolution and projects Brent prices to average $65 by 2027.

Citi has raised its third-quarter Brent crude forecast to $80 per barrel from $75 as the U.S.-Iran war drags on and repeated attempts at a deal fail to restore normal oil flows through the Strait of Hormuz. The bank still expects the conflict to be resolved, but the five-month war has lasted longer than Citi anticipated and kept more geopolitical risk in crude prices. Citi left its fourth-quarter Brent forecast unchanged at $70 per barrel and still sees the benchmark averaging $65 in 2027. Brent futures were trading at $83.11 per barrel on Friday…