Citigroup revises up 2025 oil price outlook

Citigroup revised up its 2025 oil price forecasts, citing geopolitical risks, albeit anticipates a price decline in the second half of the year.

In its recent note, the bank highlighted the potential for increased and sustained geopolitical woes in Iran, Russia, and Ukraine, which could eliminate the projected 2025 crude surplus.

Citigroup upgraded its 2025 Brent crude price forecast to $67 per barrel, from a previous projection of $62. It also raised its West Texas Intermediate (WTI) forecast to $63 per barrel.

In addition, it revised its quarterly Brent crude price outlook to $75 per barrel in the first quarter; $68 per barrel in the second quarter; $63 per barrel in the third quarter; and $60 per barrel in the fourth quarter of this year.

Citigroup pointed out that the timing and nature of newly-elected US President Donald Trump's decisions regarding Iran and Russia may be among the defining factors of the oil market and its prices in 2025.