Citi's base case sees Brent prices heading towards low-$60s/bbl by end-year
1. Citibank expects Brent oil to reach low $60s per barrel by year-end. 2. Softening markets are driving the bearish outlook on oil prices.
FAQ
Why Very Bearish?
A significant drop in Brent oil prices directly impacts BNO, which tracks oil performance. Historical instances, such as declines during 2014 and 2020, showcased similar effects on BNO's price.
How important is it?
Oil price forecasts are crucial for BNO as they represent its underlying asset. With significant market movements expected, the likelihood of BNO's price impact is high.
Why Short Term?
The expectation of low oil prices is an immediate concern, reflecting traders’ expectations of near-future declines. Rapid fluctuations in oil prices can result in quicker shifts in BNO's valuation.