Citi Slashes Brent Forecast to $60 as Hormuz Flows Normalize Faster

Oil prices have fallen to four-month lows near $74 as Wall Street banks accelerate 2026-27 Brent forecast cuts. The shift follows faster-than-expected reopening of the Strait of Hormuz, with flows recovering to 50% of pre-conflict levels by early July. UBS and OCBC lowered targets on July 2 while Goldman Sachs warned a post-crisis inventory rebuild of over 1 million bpd will not prevent a 3 million bpd global surplus in 2027. Earlier cuts came from Morgan Stanley, Citi, and JP Morgan, reflecting surging Gulf exports, weak Chinese demand, and transition from supply shock to surplus risk.