Citigroup Forecasts Brent to $120-$200; Energy ETF Rebounds 2%
Analysts at Citigroup project Brent crude will exceed $120 per barrel with a 30% probability and could surge to $200 if flow disruptions persist through June. The energy sector ETF rallied roughly 2% after West Texas Intermediate rebounded to near $92 on heightened supply concerns, underscoring increased hedging demand.
1. Oil Price Forecasts and Supply Disruption
Analysts at Citigroup forecast Brent crude will surpass $120 per barrel due to the effective closure of the Strait of Hormuz, assigning a 30% probability to that outcome and warning of a potential spike to $200 per barrel if disruptions extend through June.
2. Energy Sector ETF Performance
The energy sector ETF climbed roughly 2% as West Texas Intermediate recovered to near $92 following earlier sell-off, reflecting investor response to renewed supply concerns and heightened volatility in crude markets.
3. Portfolio Hedging Strategies
Citigroup’s commodity research team highlights near-term energy and agricultural futures as viable hedges against oil-driven inflation risks, noting that benchmark commodity indexes remain only modestly elevated since late February and offering a tool for portfolio protection.