$100 Oil Per Barrel Possible? Middle East Tensions Rise, Citi Group Warns

Are we headed for $100 oil? Growing geopolitical instability in the Middle East is fueling concerns about supply disruptions, and Citi Group is taking notice. According to Citi Research on Monday raised its bull case scenario for oil costs for this quarter and the next one, citing heightened potential of the marketplace to fear or realize potential supply shocks.

The increased volatility stems from escalating regional conflicts and their potential impact on oil production and transportation routes. This uncertainty is driving speculation and impacting oil prices globally. After reaching its highest price since October, oil could rise even further and possibly breach the US$100 mark this year if tensions in the Middle East continue to escalate.

Citi Group's analysis suggests a significant upside risk to oil prices. Their revised forecast reflects the possibility of a more severe supply crunch than previously anticipated. (Reuters) - Citi Research on Monday raised its bull case scenario for oil prices for this quarter and the next one, citing heightened potential of the market to fear or an actual reduction in output.

While the base case scenario remains lower, the possibility of $100 oil is becoming increasingly real. Market analysts are closely monitoring the situation, and any further escalation of tensions could trigger a rapid price increase. Citi Research has increased its bullish oil price forecast for the fourth quarter of 2025 and the first quarter of 2025 to $120 per barrel, citing the likelihood of supply disruptions. The implications for consumers and businesses could be significant, with potentially higher fuel costs and inflationary pressures.

Stay informed about the latest developments and how they could affect your wallet. We'll continue to provide updates on the oil market and the evolving geopolitical landscape.