{"id":1065973,"date":"2026-07-03T13:32:16","date_gmt":"2026-07-03T13:32:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1065973\/"},"modified":"2026-07-03T13:32:16","modified_gmt":"2026-07-03T13:32:16","slug":"citi-oil-could-sink-to-60-as-hormuz-traffic-normalizes","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1065973\/","title":{"rendered":"Citi: Oil Could Sink to $60 as Hormuz Traffic Normalizes"},"content":{"rendered":"

Brent Crude<\/a> prices could plunge to as low as $60 per barrel by the end of the year, says Citigroup, which expects flows through the Strait of Hormuz to soon normalize and the U.S. and Iran to reach a deal in the coming months.<\/p>\n

\u201cWe continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year,\u201d Citi analysts said in a note carried by Bloomberg<\/a>.<\/p>\n

\u201cWe expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for the US, Iran, and much of the ME region,\u201d according to Citi\u2019s note.<\/p>\n

The investment bank is one of the most bearish voices in the market, expecting shipping through Hormuz to normalize now that the Strait is open again. Moreover, China\u2019s crude buying remains weak, physical prices have crumbled due to the surge of prompt supply from the Middle East, while \u201cinventories have drawn far less than expected,\u201d Citi said.<\/p>\n

Inventories, including in the United States, have crashed to multi-decade lows since the war began four months ago. Buying to refill depleted stockpiles could support oil prices going forward, other analysts say.<\/p>\n

However, the coming global race to rebuild depleted oil inventories will not be enough to offset a massive glut that\u2019s coming to the market next year, as traffic through the Strait of Hormuz appears to be headed toward normalization, Goldman Sachs said<\/a> this week.<\/p>\n

The investment bank expects the global oil surplus to be about 3 million barrels per day (bpd) next year, Samantha Dart, co-head of global commodities research at Goldman, told Bloomberg Television<\/a> in an interview on Wednesday.<\/p>\n

\u201cWe do expect a little over 1 million barrels a day just of SPR rebuilding globally, but still, that would leave us close to 2 million barrels a day of a surplus,\u201d Dart added.<\/p>\n

Other Wall Street banks have also started to predict a glut next year after the U.S. and Iran signed the MoU.<\/p>\n

Morgan Stanley, for example, has slashed its oil price forecasts<\/a> for the next 18 months as it expects the reopening of the Strait of Hormuz to accelerate a new supply glut.<\/p>\n

By Tsvetana Paraskova for Oilprice.com<\/a><\/p>\n

More Top Reads From Oilprice.com<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Brent Crude prices could plunge to as low as $60 per barrel by the end of the year,…\n","protected":false},"author":2,"featured_media":1065974,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[292422,292419,51,87778,292425,292423,292424,292426,292421,74677,16,15,292420],"class_list":["post-1065973","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-2027-oil-glut","tag-brent-crude-price-forecast","tag-business","tag-citigroup","tag-crude-oil-inventories","tag-goldman-sachs-oil-surplus","tag-morgan-stanley-brent-forecast","tag-oil-market-outlook","tag-oil-price-forecast-2026","tag-strait-of-hormuz","tag-uk","tag-united-kingdom","tag-us-iran-deal"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1065973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1065973"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1065973\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1065974"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1065973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1065973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1065973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}