Citi Lifts Brent Outlook but Still Sees Oil Falling in 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…
Citi has increased its forecast for Q3 Brent crude to $80 per barrel, up from $75, due to ongoing tensions between the U.S. and Iran. The prolonged conflict has contributed to geopolitical risk in oil prices. The bank maintains its fourth-quarter forecast at $70 per barrel and predicts a $65 average for Brent in 2027. Brent futures rose to $83.11, while West Texas Intermediate climbed to $77.80.
The price surge occurred after Brent briefly dipped below $80 due to renewed hopes for a Hormuz agreement. This revision contrasts with Citi's earlier bullish predictions in July, when the bank forecast Brent prices falling to $60-$65 by year-end. Current challenges, such as Hormuz's continued constraints, low oil production in the Middle East, and persistent attacks on commercial vessels, have hindered a smooth resolution.
Citi's December 2025 outlook had Brent at $62, with a potential downturn to $50 in a bearish scenario or a potential rise to $75 if geopolitical disruptions materialized. However, Brent has remained well above these levels throughout the second quarter. While Goldman Sachs remains skeptical about a drop to Citi's projected fourth-quarter level, Citi's revised forecast hinges on Hormuz traffic resuming.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
