Citigroup analysts have lowered their year-end outlook for Brent crude, projecting the benchmark could fall to $60 per barrel by December 2026.
The forecast reflects a rapid normalization of global energy markets following the resumption of crude flows through the Strait of Hormuz, which had previously constrained supply and kept prices elevated.
The bank’s strategists are advising clients to treat any potential summer rally in oil prices as a selling opportunity.
With the geopolitical premium fading as shipping routes stabilize, the structural support for higher prices has weakened significantly.
The shift marks a stark reversal from the risk-off sentiment that dominated energy markets during the peak of the shipping disruptions.
Brent crude has faced downward pressure in recent sessions as traders digest the influx of supply returning to global markets.