HSBC revised down its Brent crude price forecast on Tuesday, citing rising trade tensions and an expected reduction in global oil demand.
The bank cut its Brent price forecast to $68.5 per barrel for 2025 and $65 per barrel for 2026.
It also trimmed its global demand growth to 0.7 million barrel per day (mbd) for 2025 and 0.8 mbd for 2026 (vs 0.9 mbd previously for both years) on the expectations of a one percentage point hit to global GDP.
Vacillating U.S. trade policies have created uncertainty for global oil markets and prompted the Organization of the Petroleum Exporting Countries on Monday to lower its demand outlook.
Oil stable as tariff news, China data balanced by demand outlook cuts
Brent crude futures were down 20 cents, or 0.3%, at $64.66 per barrel by 1049 GMT.
Elsewhere, other banks including JPMorgan and Goldman Sachs have revised their oil price forecasts downwards.
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