Oil prices to trend to $60-65 by Q1 2027
Citi forecasts oil trending to $60-65 per barrel by Q1 2027 as Hormuz flows normalize.
The bank’s base case assumes sustained normalization of Hormuz flows under the US-Iran memorandum of understanding.
This re-anchors prices to weaker fundamentals that existed before the conflict.
Crude has already fallen to its lowest point since the conflict began, pressuring long positions built on sustained Hormuz disruption.