Citigroup lowered the short-term price forecast for crude oil to $55 as the US and Iran nuclear deal is expected to be reached.

Citigroup research on Thursday reduced its three-month forecast for Brent crude from the previous estimate of $60 per barrel to $55 per barrel, as the restart of negotiations on the US-Iran nuclear agreement increased the likelihood of a final agreement. Citigroup stated that an agreement between the US and Iran could ease sanctions due to increased market supply, potentially pushing Brent crude prices down to $50 per barrel. However, if no agreement is reached and actions such as escalating Iran's nuclear program occur, oil prices could rise to $70 per barrel or higher. Citigroup believes there is a 60% chance of reaching a final agreement.