Citi: Brent crude could fall to $60 per barrel by the end of the year as risks around the Strait of Hormuz ease.
Analyst Francesco Martoccia said oil market fundamentals are returning to normal, with shipping activity recovering and the spot crude market weakening.
The bank also noted that global oil inventory draws have been much smaller than expected, reducing concerns over supply shortages.
Citi expects some near-term volatility as shipping routes normalize, insurance costs adjust and logistics improve, but says rising vessel traffic suggests commercial operators now see the disruption risk as manageable.
Analyst Francesco Martoccia said oil market fundamentals are returning to normal, with shipping activity recovering and the spot crude market weakening.
The bank also noted that global oil inventory draws have been much smaller than expected, reducing concerns over supply shortages.
Citi expects some near-term volatility as shipping routes normalize, insurance costs adjust and logistics improve, but says rising vessel traffic suggests commercial operators now see the disruption risk as manageable.