Analysts Warn Oil Prices Could Crash to $60 a Barrel

Oil Price Outlook

According to Radiotrek — Світ: Global oil prices may drop to $60 per barrel as shipping through the Strait of Hormuz resumes. This forecast comes from analysts at Citigroup Inc., as reported by Bloomberg. Brent crude prices fell by roughly 30% in the second quarter of 2026. As of Friday, July 3, 2026, Brent was trading above $72 a barrel, but experts highlight the potential for further declines.

The last time Brent crude dipped below $60 was in January 2026. Goldman Sachs Group Inc. supports this assessment, predicting a global oil supply glut. Meanwhile, Morgan Stanley has revised its oil price forecasts downward twice in recent weeks. These shifts occur against the backdrop of a military conflict between the United States and Iran that began in late February 2026. Although both sides have agreed to a temporary ceasefire, market conditions remain volatile.

Key Price Drivers

Oil prices are influenced by multiple factors, including changes in shipping flows. According to Citigroup Inc. analysts,

“fundamentals are quickly returning to normal. Shipping flows are normalizing, Chinese buyers remain absent, physical crude markets have sharply weakened, and inventories are much less depleted than expected.”

This suggests the market may face new challenges that will affect price dynamics.

Experts have warned that global oil prices could continue to fall through the end of the year. Market conditions are being closely monitored, and future forecasts may shift depending on how events unfold.

The decline in oil prices stems not only from the resumption of shipping but also from global economic factors, including shifts in demand from major consumers like China. Ongoing military conflicts in oil-supplying regions continue to create market uncertainty, potentially leading to price swings in the near future. Keeping a close watch on developments will remain essential for understanding future trends in the oil market.

As oil prices become increasingly volatile due to geopolitical tensions, the recent US-Iran agreement has further impacted market stability. This development highlights the interconnectedness of global oil dynamics and the potential for rapid price fluctuations, making it essential for investors and consumers to stay informed about ongoing changes in the oil sector.