Citi Cuts Short-Term Brent Oil Forecast to $60 | OilPrice.com
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Breaking News:
Citi has cut its Brent Crude forecast to $60 per barrel for the next three months on the back of last week’s tariff announcement by U.S. President Donald Trump.
The investment bank also reduced its 0-3 month copper and aluminum price forecasts amid expectations of slowing economic growth, according to a note on Monday carried by Reuters.
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Oil prices have lost about $10 in the two and a half trading days since Wednesday’s across-the-board tariffs which were a lot higher than the market was expecting.
Early on Monday, WTI Crude prices were trying to hang on to the $60 per barrel handle after falling below the threshold earlier in Asian trade. Brent Crude prices were down by more than 2% at $63.98.
“Any rallies this week on minor trade deal headlines or delays to the imposition of the April 9 tariffs would provide opportunities to sell rallies in our view,” Citi’s analysts wrote in the note.
According to the investment bank, gold and U.S. natural gas are set to outperform among commodities in the near term.
Despite the oil price rout, Citi doesn’t say ‘buy the dip.’
“We recommend that investors and consumers refrain from buying (and remain short) risk-exposed commodities such as oil and base metals until the ‘Fed put’ or a material ‘Trump put’ kicks in, or until copper reaches $7,500/t (the 3Q’22 lows) or we see a major U.S. shale or OPEC+ response (unlikely until we go sub-$60/bbl), whichever is first,” Max Layton, global head of commodities research at Citi, wrote in the note as carried by MarketWatch.
Other investment banks also cut their oil price forecasts. Goldman Sachs on Sunday slashed again its 2026 oil price forecasts by $4 per barrel, days after it had already cut its price outlook for 2025 and 2026 in the wake of the U.S. tariffs announcement.
Morgan Stanley lowered its Brent forecast to $65 a barrel in the second quarter, down from $70 previously expected. The bank sees Brent at $62.50 per barrel in the third and fourth quarters, down from $67.50.
By Charles Kennedy for Oilprice.com
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