Citi sees a meaningful surplus of oil ahead, Brent to as low as USD55 /bbl

A note from Citi on oil on Wednesday (swamped by the CPI and Fed news), paints a not very pretty picture for oil bulls.

• forecast Brent crude to US$74/bbl in Q4
• 2025 opening at $65/bbl
• 2025Q2 and Q3 to to $60
• ending 2025 at $55
• price projections for WTI are around US$4/bbl lower

Citing:

• sees global oil balances moving into a “meaningful surplus” even if OPEC+ extend production cuts through to the end of 2025
• it’ll be even worse if the cartel unwinds some of the cuts, Citi says a “very large surplus” will follow

More here.

This article was written by Eamonn Sheridan at www.forexlive.com.