Financial services company Citibank raised on Monday its quarterly oil price forecasts for this year and its year-average outlook for 2023 because additional supply from Iran looked heavily delayed.
Citi Research, Citibank’s research unit, said that the delay in Iran sanctions relief is the main factor tightening balances. The bank now factors in Iran sanctions relief beginning in the first quarter of next year, at first adding 500,000 barrels per day (BPD), then 1.3 million BPD over the second half. It previously expected Iran sanctions relief to add supply in mid-2022.
In addition, the bank said it estimated Brent to average $75 per barrel in 2023, revised higher by $16.
Similarly, Barclays on Monday raised its Brent crude price forecasts by $11 per barrel for 2022 and $23 for 2023, citing a larger and sustained disruption in Russian supply following sanctions by the European Union (EU).
The British bank sees Brent prices averaging $111 this year and next, while it sees US West Texas Intermediate (WTI) at $108 for the same period.