Citibank expects short-term Brent oil price forecast to be increased by $5 to $60 per barrel, but it remains bearish in the long term.

Citi Research raised its three-month price forecast for Brent crude oil by $5 to $60 per barrel on Wednesday, but maintained the average forecasts for the second and third quarters at $62 and $63 per barrel respectively, still expecting prices to decline in the future due to the "likelihood of the US reaching a nuclear agreement with Iran". The bank had just lowered its three-month forecast for Brent crude oil from $60 to $55 per barrel the previous week. Citi warned that if diplomatic efforts fail and the Iran nuclear issue leads to an escalation of tensions, Brent crude oil prices could rise to over $70 per barrel. Citi pointed out that risk appetite had generally increased following the conclusion of the tariff agreement, but warned that due to US fiscal constraints and weakening hard data, market tranquility "may only be temporary". Geopolitical factors are the main driver of the decline in oil prices, with Citi believing that there is a "significant possibility of reaching an agreement between Washington and Tehran", which could increase Iran's production to above 4 million barrels per day and release oil reserves.