Brent Crude May Fall to $60 Per Barrel as Strait of Hormuz Disruptions Ease, Citigroup Says

According to Citigroup analyst Francesco Martoccia, Brent crude oil may fall to $60 per barrel as disruptions at the Strait of Hormuz gradually ease. "Fundamentals are rapidly reasserting themselves," Martoccia wrote in a report, citing recovering shipping flows, weaker spot crude markets, and inventory declines below expectations.

Goldman Sachs and Morgan Stanley have echoed similar concerns, warning that global oil markets face an oversupply risk as traffic through the strait normalizes. Morgan Stanley has cut its oil forecasts twice in recent weeks.