Investing.com – Oil prices rose on Friday and were on track for a third straight week of gains Citi Group (NYSE:) to revise average prices higher for the first quarter of 2025.
At 08:55 ET (13:55 GMT), the Brent contract rose 3.7% to $79.75 per barrel, on track for a third straight week of gains.
Crude oil markets have rallied due to potentially wider geopolitical implications for Iran’s oil exports and cold weather, boosting heating demand and affecting U.S. oil supply, Citi analysts said in a Jan. 9 note.
“With prices potentially firmer until the Trump administration takes office, we revise average Brent prices from $65/bbl to $71/bbl for 1Q25 as Chinese buyers have pulled back more than expected on buying Iranian oil ,” said Citi.
In the run-up to the inauguration of newly-elected US President Donald Trump on January 20, expectations are rising about possible supply disruptions due to stricter sanctions on Iran and Russia, while oil supplies remain low.
However, Citi maintains its overall bearish view for 2025, with Brent prices falling to $60/bbl from Q2 2025, while seasonal stocks are higher than normal.
“Money managers’ positioning in crude oil has lengthened, leaving more room for downside. Trump’s positions on trade tariffs, boosting US energy supplies and lowering energy prices continue to indicate a downward trend for oil prices,” Citi said.
