Citigroup has significantly lowered its year-end price target for Brent crude, projecting the benchmark will fall to $65.50 per barrel by December 2026.
The revised forecast reflects the bank’s assessment that easing geopolitical tensions and stabilizing supply flows are removing the premium that had supported higher prices earlier in the year.
This downward revision aligns with recent market movements, where Brent crude futures have slumped to approximately $72.
This downward revision aligns with recent market movements, where Brent crude futures have slumped to approximately $72.60 per barrel, marking a roughly 9% decline over the past week.
The drop follows the resumption of oil flows through the Strait of Hormuz, which has alleviated immediate supply disruption risks and prompted a repricing of energy assets across global markets.
While Citi turns bearish on oil, the bank maintains a positive outlook for equity markets in Asia.
Analysts at Citigroup forecast a 26% increase for Chinese equities and growth for Japanese indices by year-end, suggesting a broader shift in capital flows away from commodity exposure toward equity risk assets in the region.