Brent crude futures strengthened on Thursday, with December contracts rising 2.65% or $2.88 to trade at $111.70 per barrel, having earlier touched a session peak of $112.68. The price resilience coincides with an altered perspective from Citi, which now projects upside risks for global benchmarks despite improving export volumes from the Middle East.
The stance marks a notable departure from the investment bank's position three months ago, when it had forecast Brent to decline to between $60 and $65 per barrel by the end of the year, according to reporting by OilPrice.com.
Citi highlighted that export recoveries do not immediately translate into accessible supply for consumers. The bank observed that moving crude out of the Gulf and delivering it to refineries at sustainable costs remain distinct operational challenges.
Logistical friction continues to affect physical flows, with Citi reporting that more than 1 million barrels per day of Gulf crude has been undergoing ship-to-ship transfers between vessels, complicating maritime transit to end-markets.