Lates News

Citigroup research on Wednesday raised its three-month price forecast for Brent crude by $5 to $60 per barrel, but maintained average forecasts for the second and third quarters at $62 and $63 respectively. It still expects the market 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 from $60 to $55 the previous week. Citigroup warned that if diplomatic efforts fail and tensions escalate over the Iranian nuclear issue, Brent crude prices could rise to above $70. Citigroup pointed out that risk appetite had generally increased after the tariff agreement. However, the bank warned that due to US fiscal constraints and soft US hard data (quantifiable economic indicators), the market's calmness "may only be temporary." Geopolitics is the main factor for the decline in oil prices, Citigroup believes that there is a "significant possibility of an agreement between Washington and Iran" which could increase Iran's production to over 4 million barrels per day and release oil reserves.