Citigroup Cuts Year End Brent Forecast to Around $82/bbl

Citigroup has cut its Brent forecast from $84/bbl by year end to around $82/bbl based on global demand coming in below expectations.

• “Curve structure has flattened and normalized for a well-balanced market, which we expect to last through year-end and turn more bearish through 2024, barring any further market intervention by some OPEC+ countries or any unexpected outage” the bank said.
• OPEC+ voluntary cuts take place from this month and are set to take over 1mn bpd out of global supply if met.
• Russia claims to have cut production by 500,000 bpd but seaborne flows have been leaving at a record pace in recent weeks drawing into question commitment towards the cut. Russia’s excess flows have weighed on global crude prices in recent months.