Experts suggest that Brent may reach $150 per barrel if the Strait of Hormuz allows tanker traffic to resume only in the third quarter.
On Wednesday morning, the price of July Brent futures on the London ICE Futures Exchange was $110.14 per barrel, decreasing by $1.14 (1.02%) from the last close.
Citi’s foundational prediction for 2027 is for Brent to fluctuate between $80 and $90 per barrel. This prediction relies on the premise that Iran will reestablish dominance over shipping in the Strait of Hormuz and modify its oil exports to align with anticipated demand. Analysts point out that it is very challenging to make long-term predictions.
They anticipate a decline in worldwide oil inventories by 1 million barrels this year. The analysts stated in a report that they anticipate the majority of this inventory drop will take place beyond China, as reserves near the lows of 2011-2014.
source: ft.com
