Oil prices may soar by 62% in early 2025

CitiBank predicts that by the beginning of next year, the price per barrel may exceed $120, which is 62% more than current figures.

Such a «bullish» scenario is based on the expectation of possible Israeli actions in response to an Iranian missile attack, which could affect the key oil production infrastructure in Iran. This will lead to a reduction in production and an increase in oil prices.

Citi also provided a baseline forecast according to which oil prices will remain around $74 this year and then drop to $60 next year. This scenario is based on the assumption that major oil-producing countries such as Saudi Arabia and the UAE will intervene if there are supply disruptions.

OPEC+, according to Citi estimates, has additional production capacity of about 6 million barrels per day.

Other analysts also predict a rise in prices amid the Middle East escalation, but some believe that the risk of disruptions in oil supplies from Iran is low. Saudi Arabia's oil minister recently said that oil prices could fall by 33% because, in his opinion, OPEC+ producers are pumping too much oil.