Citibank raises its oil price predictions due to the “extreme delay” of the deal with Iran

Citibank raised its quarterly forecast for oil prices on Monday questyear and its forecasts for the media for next year, due to what appears to be a significant delay in adding oil supplies from Iran.

Citi Research, Citibank’s research unit, said the delay in lifting sanctions imposed on Iran is the main factor in anticipating a reduced supply, according to Reuters.

Citibank now plans to begin easing sanctions imposed on Iran in the first quarter of next year, which will initially add 500,000 barrels per day and then 1.3 million barrels per day in the second half of next year.

The bank had previously predicted that easing sanctions against Iran would add supplies to the supply in the middle of quest’year.

Citibank increased its forecast for the price of Brent crude oil in the second quarter of 2022 by $ 14 to $ 113 per barrel and its price in the third and fourth quarters by $ 12 to $ 99 and $ 85 per barrel, respectively.

The bank has estimated that the average price of a barrel in 2023 will be $ 75, in increase from the previous forecast of 16 dollars.

Despite the decline in Russian oil production and exports, Citibank said expectations of a decrease in Russian production between 2 million and 3 million barrels are exaggerated.

He explained that diverting flows to Asia could mean that Russian production and exports might not decrease by much, but they could decrease between one million and 1.5 million barrels per day.

Forecasts weaker oil demand growth of 2.3 million barrels per day in 2022 due to economic headwinds, closures in China and higher prices.

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