Citi predicts oil prices may drop to $60 per barrel by 2025

At Extreme Investor Network, we pride ourselves on providing cutting-edge insights and analysis to help investors stay ahead of the curve. Today, we want to discuss the future of oil prices and how recent trends may impact the market in 2025.

According to a recent report from Citi, oil prices are expected to plummet in 2025 as the market faces a “substantial surplus.” Factors contributing to this projected drop include the increasing adoption of electric vehicles, greater energy efficiency, and the growth of production outside of OPEC countries. Citi predicts that the price of global benchmark Brent will start to decline in the fourth quarter of 2024 and ultimately settle at around $60 per barrel in 2025.

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One key driver of this surplus is the plan by OPEC+ members to bring 2.5 million barrels per day back into the market from October 2024 to September 2025. Even if OPEC+ were to reverse course and not increase production, Citi still anticipates a surplus of 900,000 barrels per day. This is due to the expected growth in oil production outside of OPEC, particularly in regions like North America, Brazil, and Guyana.

With demand growth slowing and the market potentially oversupplied, investors should be prepared for the possibility of falling oil prices in the coming years. Deutsche Bank and TD Securities have also expressed concerns about the impact of OPEC+ production increases on the market, with projections of Brent falling below $60 per barrel by the end of 2025.

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As experts in the field of investing, Extreme Investor Network recommends that investors carefully monitor these developments and consider adjusting their portfolios accordingly. By staying informed and proactive, investors can position themselves to navigate the changing landscape of the oil market and capitalize on emerging opportunities. Stay tuned to our platform for more updates and insights on this evolving scenario.

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