Citi: Oil Could Sink to $60 as Hormuz Traffic Normalizes

Brent Crude prices could plunge to as low as $60 per barrel by the end of the year, says Citigroup, which expects flows through the Strait of Hormuz to soon normalize and the U.S. and Iran to reach a deal in the coming months.

“We continue to recommend selling any summer rallies and forecast Brent reaching $60 to $65 a barrel by the turn of the year,” Citi analysts said in a note carried by Bloomberg.

“We expect the MOU to hold and turn into a deal over the coming months as incentives to de-escalate outweigh the alternative for…