Citigroup: Brent Crude Oil Prices to Slide to $55 per Barrel by Late-2025

SEATTLE (Oil Monster): Citigroup analysts project Brent crude oil prices to average at $78/bbl in the second quarter of the current year and could eventually fall to $55/bbl by late next year.

In its latest report, the bank noted that crude oil prices continued to witness surge in the initial quarter of the year, mainly driven by limited crude supplies and refinery disruptions. The OPEC+ countries are expected to continue with production cuts at least until the end of the current year.

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The report noted that Bent crude prices are likely to average at $78 per barrel in Q2 this year, drop to $74/bbl in Q3 and dip further to $70/bbl in Q4 2024. Citigroup announced surprisingly bearish outlook for 2025. The bank forecast prices to average at $65/bbl in Q1 and drop further to $60/bbl in Q2 and Q3. The price will then dip further to $55/bbl in Q4 2025.

Citigroup expects supply risks from Israel, Iran, Iraq, Libya and Venezuela to persist. On the other hand, Saudi Arabia, the United Arab Emirates, Kuwait and Russia could contribute to additional supplies. Among non-OPEC producing countries, the U.S., Canada, Brazil and Guyana may see rise in output.

Furthermore, Citigroup expects global refining runs to surge in the second half of 2024.