Brent crude futures have slumped to $72.60 per barrel, marking a roughly 9% decline over the past week as global energy markets adjust to the resumption of flows through the Strait of Hormuz.
The benchmark contract continues its downward trajectory, reflecting a rapid normalization of supply conditions that had previously been constrained by geopolitical tensions.
Citigroup analysts have sharpened their outlook, projecting that Brent could fall to $60 by the end of the year.
Citigroup analysts have sharpened their outlook, projecting that Brent could fall to $60 by the end of the year.
The bank’s forecast underscores the market’s growing confidence that the supply shock is fading, leaving a surplus of inventory to weigh on prices.
This repricing signals a significant shift from the risk premium that had supported higher levels earlier in the year.
The falling price environment poses immediate fiscal challenges for oil-dependent economies.