Citi analysts predict that the price of oil could fall to 60 dollars per barrel

Citi analysts remain bearish on oil prices and predict a sharp decline, highlighting ongoing geopolitical tensions around the world. Brent Crude is currently trading around $80.50 and is in line with market expectations.

However, Citi analysts predict that Brent oil prices could soon collapse, leading to disruptions in commodity markets. The decline could affect the global oil and gas sector and lead to a general correction in equity markets shortly.

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Oil prices could fall to $60 per barrel: Citi analysts

When the forecast was published by Citi analysts, Brent crude oil prices were hovering around $82 a barrel. Prices have already fallen nearly $2 since the prediction was made earlier this week.

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According to the price prediction from Citi analysts, Brent oil could collapse and reach the $60 per barrel mark. This is another 20% drop from the current price of $80 per barrel.

“Our 0-3 month Brent forecast is $82/bbl before prices decline in Q4 and into 2025 when we expect it to settle at $60/bbl,” states the Citi note.

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Citi anticipates volatility due to macroeconomic factors, including geopolitical tensions and conflicts in the Middle East for falling oil. Therefore, taking an entry position in Brent Crude currently is considered risky by Citi analysts. Cargo is more likely to head south than north for the remainder of 2024.

However, while Citi analysts are bearish on Brent oil prices, they are bullish on copper. Their latest prediction estimates that copper prices could have an edge towards $12,000 in 2024.

Copper is currently trading around the $9,650 level and is more likely to reach $12,000 in Q4 2024, they predicted. That’s a plus and a return on investment (ROI) of nearly 25% if the prediction turns out to be accurate.