Citi raises oil price estimates for 2022 and 2023

Citi Research raised its quarterly oil price forecasts for 2022 and 2023, because of delayed Iran deal.

According to Reuters, delay in Iran sanctions relief is the main factor tightening balances

Citi raised its second-quarter 2022 Brent price forecast by $14 to $113 a barrel and the third and fourth quarter prices by $12, to $99 and $85 a barrel respectively. The bank revised Brent higher by $16 to average $75 per barrel in 2023.

Meanwhile, Russian oil production and exports extended slide, Citi said expectations of a drop in Russian production of 2 million to 3 million bpd were overestimated.