Citi sees oil slipping to $60/bbl in 2025 on weak demand, higher supply

Citi predicts oil prices could average $60/barrel in 2025 if OPEC+ doesn’t deepen production cuts, citing weaker demand and higher non-OPEC supply, media sources reported. Although a technical rebound is possible, the market may lose confidence in OPEC defending $70/barrel if the cartel does not extend its output cuts indefinitely.

Geopolitical tensions have had a limited impact on sustaining higher prices, with recent rebounds weakening since October 2023, according to Citi. Meanwhile, Goldman Sachs recently cut its 2025 Brent forecast, citing slower Chinese demand.

OPEC confirmed plans to unwind its most recent production cuts of 2.2 million barrels/day starting in October, but sources told Reuters that the group is now considering delaying the increase in response to oil prices dropping to year-lows.