Citi Raises Oil Price Forecast Amid Iran Conflict Background

BlockBeats News, March 12th, Citi Research raised its Brent oil price forecast to: $75 for the first quarter, $78 for the second quarter, $68 for the third quarter, up from the previous $73, $70, and $62, respectively. Citi stated that oil prices may fluctuate between $80 and $100 per barrel in the short term. Analyst Eric Lee stated in the report: "We believe that neither the US nor Iran wants to see the conflict escalate to the next level, as that would likely involve regional energy infrastructure and domestic public infrastructure in Iran, so our base case scenario is that shortly after the US achieves its military goals, the situation will de-escalate." However, he added that the risk of attacks on regional energy infrastructure remains high, "which could trigger an oil shock similar to the 1970s." (FX Street)