Citi Lifts Brent Outlook but Still Sees Oil Falling in 2027

Citi has raised its third-quarter Brent crude forecast to $80 per barrel from $75 as the U. S. -Iran war drags on and repeated attempts at a deal fail to restore normal oil flows through the Strait of Hormuz.

The bank still expects the conflict to be resolved, but the five-month war has lasted longer than Citi anticipated and kept more geopolitical risk in crude prices. Citi left its fourth-quarter Brent forecast unchanged at $70 per barrel and still sees the benchmark averaging $65 in 2027.