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 delayOPEC+ lifeline falls flat, WTI settles down $1.14
Just a few moments ago we had oil inventory data:
Oil: private survey of inventory shows a headline crude oil draw much larger than expected
Brent catching a bid on it:
This article was written by Eamonn Sheridan at www.forexlive.com.
