Citi: The rise in oil prices is temporary and will weaken within a year

Citi analysts said in a report that the recent rise in crude oil prices is temporary and should weaken in the second half of 2024. Citi reiterated its base point that the current strength in oil prices is temporary, with Brent crude oil prices falling to $78 per barrel in the second quarter, $72 in the second half of the year, and a significant decline to $60 per barrel in 2025. “We continue to advise producers to consider hedging downside risks in 2025,” the bank said. Citi also expects the launch of the long-delayed Transmountain Pipeline, which stretches from Alberta to Canada’s west coast, in the second quarter, which will narrow the spread between Brent and West Texas Intermediate.