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      Citi Raises 3Q26 Brent Forecast to $86, Predicts Price Decline by 2027

      Citi has increased its third-quarter 2026 Brent crude oil forecast to $86 per barrel, reflecting recent market trends. This adjustment, described as a mark-to-market change, does not alter the bank's long-term outlook, which maintains a forecast of $70 per barrel for the fourth quarter of 2026 and $65 per barrel for 2027. The bank's analysis suggests that the reopening of the Strait of Hormuz will lead to a significant surplus in oil supply, surpassing levels seen before recent conflicts disrupted flow through the region.

      In addition to its oil forecast, Citi has revised its projections for natural gas markets. The bank lowered its third-quarter 2026 forecast for US Henry Hub gas to $2.90 per million British thermal units, attributing this change to anticipated growth in domestic production that is expected to keep prices subdued. Conversely, Citi raised its forecasts for European gas, predicting prices of €60 per megawatt hour for the third quarter and €56 per megawatt hour for the fourth quarter of 2026.

      These revisions indicate a divergence in Citi's outlook for oil and gas markets, with oil prices expected to face downward pressure into 2027 while European gas markets may experience modest price increases. The bank's expectations hinge on the normalization of supply following the reopening of the Strait of Hormuz and ongoing trends in US gas production.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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