Citi raised its third-quarter 2026 Bent crude oil price forecast to $86 per barrel from a previous estimate of $80 per barrel on Thursday. The bank attributed the revision to a longer-than-expected closure of the Strait of Hormuz.
The bank maintained its fourth-quarter 2026 and 2027 Brent price forecasts at $70 per barrel and $65 per barrel, respectively.
Citi stated that Iran faces pressure to reopen the strait as its economy has been hurt by a sharp currency decline and lost oil revenue in recent weeks.
The bank anticipates a near-term escalation in the Middle East that could lead to renewed dealmaking efforts or other developments that would allow the Strait of Hormuz to reopen in the fourth quarter of 2026.
Citi also adjusted its third-quarter U.S. Henry Hub natural gas price forecast lower to $2.9 per million British thermal units, citing expected production growth. The bank raised its European benchmark TTF price forecasts to €60 per megawatt-hour for the third quarter and €56 per megawatt-hour for the fourth quarter, as the market anticipates continued disruption to liquefied natural gas exports through the strait.
Source: Investing.com
