According to a Citi Research forecast, oil prices are expected to ease through the remainder of 2024. The investment bank predicts that Brent crude futures will average $86 per barrel in the second quarter of 2024 and $74 per barrel in the third quarter.
Citi noted that while crude oil prices are currently trading over $10 per barrel off their highs, some speculative buying may occur. However, the bank believes the best strategy is to sell any rally, balancing the geopolitical risks with the loosening fundamentals.
On Thursday, Brent crude futures were trading around $84 per barrel. This is in contrast to a previous note from Goldman Sachs, which stated that it still expects Brent crude futures to remain in a range of $75 to $90 per barrel in most scenarios, with an average of $82 per barrel in 2025.
The easing of oil prices expected by Citi is likely due to a moderation in global oil demand growth, as the investment bank mentioned in its note. This could be influenced by various economic and geopolitical factors affecting the market.