• 20/02/2024 16:45

Citi lowered forecast for Brent price in 2024 to $74

Analysts at Citi Research have lowered their forecasts for the price of Brent oil for this and next years due to fears of an excess of oil on the market, Reuters reports.

Citi lowered forecast for Brent price in 2024 to $74

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Analysts' forecast

In particular, the forecast for 2024 was reduced by $1, to $74 per barrel, and the forecast for 2025 – by $10, to $60 per barrel.

Analysts expect oil prices to remain above $70 per barrel this year.

Analysts expect oil prices to remain above $70 per barrel this year.

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At the same time, in a note, Citi clarified that the conflict in the Red Sea could lead to a short-term increase in the premium in oil prices.

Read: Escalation of the conflict in the Middle East led to an increase in oil prices

Oil prices

The price of Brent oil for delivery in March on the London ICE exchange on Friday, January 12, exceeded $80 per barrel for the first time since December 27 2023, according to data from the trading platform.

At its peak, the cost of futures was $80.74 per barrel, an increase of more than 4%. At the same time, the price of February futures for WTI oil also increased.

Recall

Earlier, the Ministry of Finance wrote that the main factor in the price increase is the escalation in the Middle East. The conflict between Israel and Hamas is widening. The United States and Britain said they carried out air and sea strikes against Houthi military installations in Yemen in response to the group's attacks on ships in the Red Sea.

The Houthis carried out a large-scale attack on ships with drones and missiles. The US military repelled the attack, but shipping companies remain wary of sending their ships through the Red Sea for security reasons.

    Oil

minfin.com.ua

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