Recession: Citi says oil may collapse to $65 by year-end

Crude oil prices could crash to $65 a barrel by the end of this year and $45 by the end of 2023 if a recession hits the world economy, analysts at Citi said in a report.

The benchmark Brent crude is trading at $101.9 per barrel at present, after shooting up to $128 in early March because of the Ukraine war. It was prevailing at around $97 a barrel before Russia’s invasion of Ukraine.

Rising Covid infections in China coupled with fears of a recession in the US and Europe as central banks takes aggressive rate hike actions to quell inflation have seen its prices softening recently.