Citi analysts project that Brent Crude prices may drop to $60 per barrel by the end of the year, even amidst intermittent geopolitical tensions between the US and Iran. This forecast comes as OPEC+ plans to increase oil output quotas by 188,000 barrels per day in August, continuing a trend of unwinding previous production cuts. Currently, Brent Crude is at approximately $72.12 per barrel. The anticipated increase in supply appears to outweigh any potential disruption from US-Iran tensions, as major shipping lanes remain unaffected for now. In the context of prediction markets, this outlook appears consistent with a decrease in the probability of crude oil reaching a new all-time high by the end of the year.
Key Takeaways
Citi analysts suggest that Brent Crude prices could fall to $60 per barrel by year-end, despite geopolitical tensions.
OPEC+ is set to raise oil output quotas by 188,000 barrels per day, which may influence oil pricing trends.
Prediction markets suggest a decline in the likelihood of crude oil reaching a new all-time high this year.
