Citi: Hormuz Impact Receding, Oil Price Could Fall to $60 by Year-End

BlockBeats News, July 3rd, Citigroup lowered its annual oil price forecast range, pointing to a lower range. It believes that as the transportation through the Strait of Hormuz resumes, the previous disruptions caused by geopolitical conflicts are quickly fading away, and the market will be led by supply and demand fundamentals once again.

Citigroup analysts, led by Francesco Martoccia, stated in the report: "With the fading of the Hormuz disruption, fundamentals are rapidly regaining dominance. Shipping traffic is returning to normal, major buyers are still absent from the market, the physical crude market is sharply weakening, and inventory reductions are well below expectations."

Based on this assessment, Citigroup expects the Brent crude oil price to potentially fall to around $60 per barrel by the end of the year and advises selling during the summer rebound, with a target range of $60 to $65.