What is Citi's prediction for oil prices if peace deals are reached?

Citi predicts that if peace deals involving Russia and Ukraine, and de-escalation with Iran occur by summer 2026, Brent crude could decline to $60-62 per barrel.

Why are oil prices currently supported?

Current oil prices are supported partly due to tighter enforcement of U.S. sanctions on Russian and Iranian oil, alongside other supply disruptions.

What is China's role in the current oil market?

China has been buying Russian and Iranian oil at a discount to global benchmarks for purchasing and stockpiling purposes, a trend expected to continue.

Home / Business and Economy / Citi: Peace in East Could Send Oil Prices Tumbling

Citi: Peace in East Could Send Oil Prices Tumbling

17 Feb

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Summary

Near-term oil prices may stay high due to US pressure on Russia and Iran.
Peace deals by summer could lower Brent crude to $60-62 per barrel.
China buys Russian and Iranian oil at a discount for stockpiling.

Citi: Peace in East Could Send Oil Prices Tumbling

Oil prices may experience continued support in the immediate term, influenced by U.S. efforts to broker peace agreements involving Russia and Iran. However, a future resolution to these conflicts could potentially drive crude oil prices downward by the end of 2026.

Analysts at Citi have indicated that Brent crude, which has seen a recent rally to near $70 per barrel, is partly impacted by stricter enforcement of U.S. sanctions on Russian and Iranian oil. These sanctions, alongside other supply disruptions, have contributed to the price increase.