Citigroup analysts have sharply lowered their year-end outlook for Brent crude, projecting the benchmark could fall to $60 per barrel by December 2026.
The bank is advising investors to capitalize on temporary price increases to reduce exposure, signaling a bearish shift in sentiment for the remainder of the year.
The $60 target implies a substantial correction from recent levels, driven by the bank’s assessment that geopolitical premiums and supply constraints are fading faster than previously anticipated.
The forecast reflects a rapid normalization of global energy markets, according to the report.
Citi’s strategy team suggests that the current pricing environment offers limited upside potential, urging clients to treat any short-term rallies as selling opportunities rather than signs of sustained demand strength.
This downgrade marks a significant pivot from earlier expectations, highlighting growing concerns about demand elasticity and supply adequacy.
The $60 target implies a substantial correction from recent levels, driven by the bank’s assessment that geopolitical premiums and supply constraints are fading faster than previously anticipated.