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Citi raises Brent forecast to $80 in third quarter amid U.S.-Iran risk
Citi kept its fourth-quarter Brent outlook at $70 per barrel and still expects the benchmark to average $65 in 2027, despite lifting the near-term view.
Citi has increased its third-quarter forecast for Brent crude to $80 per barrel from $75, citing the drag from the U.S.-Iran war and continuing disruptions to oil flows through the Strait of Hormuz, OilPrice reports.
The bank said the conflict, now about five months old, has lasted longer than it previously anticipated, keeping more geopolitical risk in crude prices even as it still expects the dispute to eventually be resolved.
Citi left its fourth-quarter Brent forecast unchanged at $70 per barrel and continues to project Brent averaging $65 in 2027. It also pointed to constrained shipping through Hormuz, Middle East production still below pre-war levels, and ongoing attacks on commercial vessels during negotiations.
The revision marks a move away from Citi’s more bearish stance earlier this summer, when it recommended selling rallies and forecast Brent would fall to a $60 to $65 range by year-end as Hormuz traffic normalized. OilPrice adds that Brent futures were around $83.11 per barrel and WTI around $77.80 at the time of the update.
Latest closeWTI crude $78.07 ▲3.8%|Brent $83.46