Citigroup analysts have projected that Brent crude could decline to US$60 a barrel by the end of the year, driven by the rapid normalization of global energy markets following the resumption of crude flows through the Strait of Hormuz.
The forecast marks a significant shift in sentiment as the geopolitical risk premium that has supported prices begins to unwind.
The benchmark contract last traded below $60 in January, suggesting a substantial repricing would be required to reach Citi’s year-end target.
Brent was trading just above $72 a barrel on Friday, having slumped roughly 9% over the past week as global energy markets adjusted to the easing of tensions.
The benchmark contract last traded below $60 in January, suggesting a substantial repricing would be required to reach Citi’s year-end target.
The decline reflects the market’s assessment that the immediate threat to supply chains has diminished.
The Strait of Hormuz remains a critical chokepoint for global oil shipments, and any lingering uncertainty continues to weigh on trader sentiment.