CITIGROUP: Oil to Trend Lower
CITIGROUP expects oil to trend lower over the next 6-12 months and reach $60-65/bbl by Q1 2027 due to a potential US-Iran conflict resolution
CITIGROUP said on Thursday it expects oil to trend lower over the next 6-12 months and reach $60-65/bbl by Q1 2027, citing a US‑Iran memorandum to end their conflict that would normalize shipments through the Strait of Hormuz.
The bank added that restoring and normalizing flows via the strait would, over time, "re-anchor prices to weaker fundamentals." Oil slid on Thursday to its lowest level since the Feb.
28 outbreak of war; analysts say exports through the strait, about one-fifth of global supply, could return to normal in the coming months.