Citi Says Oil Prices Could Plunge Below $60 Amid Market Uncertainty
Portfolio Pulse from Lekha Gupta
Citi warns that oil prices could fall below $60 per barrel by 2025 if OPEC+ doesn't cut production further, due to reduced demand and increased supply from non-OPEC countries. The market may lose confidence in OPEC+ maintaining the $70 level, and Citi recommends selling into rallies when Brent nears $80. Goldman Sachs also predicts a potential decrease in oil prices due to AI advancements.
September 05, 2024 | 4:42 pm
News sentiment analysis
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NEGATIVE IMPACT
BNO, an ETF tracking Brent oil prices, could be impacted by Citi's prediction of oil prices potentially falling below $60 per barrel by 2025. The ETF may experience volatility as market confidence in OPEC+ wanes.
BNO is directly tied to Brent oil prices, which Citi predicts could fall below $60. This would negatively impact BNO's value, especially if market confidence in OPEC+ diminishes.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
DBO, an ETF focused on oil futures, may face downward pressure if oil prices drop as Citi predicts. The ETF could see increased volatility with potential price declines.
DBO is linked to oil futures, which are likely to be affected by a significant drop in oil prices as forecasted by Citi. This could lead to a decrease in DBO's value.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
OILK, an ETF tracking crude oil prices, could be negatively impacted by Citi's forecast of oil prices dropping below $60. The ETF may experience increased volatility.
OILK is directly tied to crude oil prices, which are expected to decline according to Citi's forecast. This would likely result in a decrease in OILK's value.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
USL, an ETF that holds oil futures contracts, may see a negative impact if oil prices fall as Citi predicts. The ETF could face increased volatility and potential price declines.
USL holds oil futures contracts, which are likely to be impacted by a significant drop in oil prices as forecasted by Citi. This could lead to a decrease in USL's value.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 65
NEGATIVE IMPACT
USO, an ETF that tracks the price of West Texas Intermediate (WTI) crude oil, could be negatively impacted by Citi's forecast of oil prices dropping below $60. The ETF may experience increased volatility.
USO is directly tied to WTI crude oil prices, which are expected to decline according to Citi's forecast. This would likely result in a decrease in USO's value.
CONFIDENCE 95
IMPORTANCE 75
RELEVANCE 85