Citi: If OPEC+ does not permanently reduce production, oil prices may fall to $60 next year

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Jinshi Data News on September 5th, Citigroup predicts that although oil prices may experience a technical rebound, if OPEC+ does not commit to indefinitely extending the current production cuts, the market may lose confidence in OPEC+ defending the $70 per barrel oil price level, and the average oil price may fall to $60 per barrel by 2025. If Brent crude oil prices fall to $60 per barrel, fund flows may further exert pressure, and oil prices may need to fall to $50 per barrel before rebounding. Citigroup warns that initially, geopolitical tensions were expected to boost oil prices, but every rebound since October 2023 has been weakening. The market now realizes that tensions do not necessarily lead to production cuts or transportation issues, which makes rebound an opportunity to sell. Considering the current market dynamics, Citigroup recommends selling on rallies when Brent crude oil approaches $80 per barrel.

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