Citigroup Sees Brent Crude Climbing to $120, Bull Case of $150 on Hormuz Disruption
Citigroup strategists project Brent crude to rally to at least $120 and hit $150 per barrel in a bull case due to prolonged Strait of Hormuz disruptions. They warn the closure risks 20% of global supply, spurring a near 50% price surge since February and gas near $4.
1. Citi’s Oil Price Outlook
Citigroup strategists project Brent crude to reach at least $120 per barrel within a month and up to $150 in their bull-case scenario if regional tensions persist.
2. Middle East Disruption Impact
They highlight that disruptions to the Strait of Hormuz threaten 20% of global oil supply and warn that damage to Iranian energy infrastructure could extend volatility into mid-year or beyond.
3. Market Price Movements
Oil surged from around $72 per barrel before U.S. strikes on Iran to a peak near $119 in early March—a nearly 50% jump—and is currently trading near $101 per barrel.
4. Consumer and Economic Effects
Rising crude prices have pushed U.S. average gasoline prices close to $4 per gallon and raised concerns about a global inflation surge, potentially affecting Citigroup’s trading and advisory businesses.