Oil merchants heads up, right here's what’s going to set off a plunge in Brent crude oil to the low $60s

Citibank sees Brent crude swinging between $60 and $90 relying on geopolitical and demand drivers.

Analysts at Citibank stated on Wednesday that Brent crude oil costs might fall into the low-$60 per barrel vary if there may be tangible progress towards a U.S.–Russia settlement, a improvement they see as easing geopolitical danger premiums available in the market.

In a word to purchasers, Citi cautioned that additional draw back from these ranges would possible require a sharper deterioration in demand, notably a slowdown in China’s crude oil imports and decreased refinery exercise aimed toward producing diesel.

On the flip facet, the financial institution highlighted a possible bullish situation wherein costs might climb towards its base bull case of round $80/bbl, and even take a look at ranges above $90/bbl, if geopolitical tensions persist or if demand situations enhance.

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Citi views through Reuters.

This text was written by Aaron Cutchburt at investinglive.com.