According to a report released by Citigroup, oil prices have surged in the past three weeks, with Brent crude breaking through $86 a barrel. However, the bank believes that current oil prices are too high. Due to concerns over geopolitical tensions and their impact on supply and demand expectations, oil prices have significantly exceeded their intrinsic value, and the bank advises investors not to chase after them.

Looking ahead, the bank predicts uncertainty in the demand from major oil consuming regions, including China, and warns of significant risks facing oil prices in the third quarter. However, persistent geopolitical risks, tensions in Russia, Ukraine, and the Middle East, continue to provide upward pressure on oil prices.