Citibank predicts oil will drop to $60

Citibank expects oil prices to decline to a range between $60 and $65 per barrel by the first quarter of 2027, with futures contracts retreating over the next 6 to 12 months. The bank based this forecast on the resumption of oil flows through the Strait of Hormuz following the signing of a memorandum of understanding between the United States and Iran to end the war, although key issues between the two countries remain unresolved. The sailing of oil tankers and the lifting of sanctions on Iran have driven oil prices down to their lowest levels since the start of the war last February.

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