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Oil Prices Surge Amid Syrian Turmoil

Oil prices kicked off the week on an upward trajectory after rebels ousted the 43-year rule of President Bashar al-Assad and his father, Hafez al-Assad. The prospect of civil war has fueled concerns over heightened tensions in the Middle East, raising the risk of supply chain disruptions.

Key Figures

  • Brent crude rose 0.52% to $71.49 per barrel.
  • US light crude climbed 0.58% to $67.59 per barrel.

These movements followed the seizure of Damascus by Hayat Tahrir al-Sham, a radical rebel group, on Sunday. This marked the end of 50 years of Assad family rule, raising fears of a possible escalation into civil war.

The oil market’s upward trend comes after two consecutive weeks of losses for both Brent and US light crude, driven by growing expectations of oversupply in 2025.

Market Constraints

Despite the rise in prices, broader market sentiment remains weighed down by weak demand in China, the world’s second-largest economy. This prompted Saudi Aramco, the world’s top crude exporter, to slash its January 2025 prices for the Asian market to the lowest level since early 2021.

OPEC+ Strategy Shift

In a move that surprised markets, OPEC+ postponed its planned production increase for January by an entire year, rather than the previously expected three months. OPEC+ controls about 50% of global oil production, and the group had initially planned to ramp up production from October 2024. However, slowing demand, especially from China, along with rising output from other producers, forced multiple delays to the increase.

With the global energy market still under pressure from weak demand, the cartel’s decision signals a shift toward a more cautious production strategy to maintain price stability.

Citigroup Raises Eurobank Target Price Following Strong Q1 Results

Revised Target Price Reflects Strengthened Outlook

Citigroup raised its target price for Eurobank to €5.00 from €4.70 while maintaining a buy recommendation following the bank’s first-quarter results and upgraded medium-term profitability outlook. Based on Eurobank’s reference share price of €3.72 on May 15, 2026, Citigroup’s revised target implies upside potential of 34.4%, rising to 38.5% when the estimated dividend yield of 4.1% is included.

Enhanced Earnings And Comprehensive Forecasts

The upgraded analysis from Citigroup, as reported by Newmoney, points to bolstered momentum in net interest income and fee generation. The investment bank has revised its normalized earnings per share forecasts upward: 4% for 2026, 9% for 2027, and 14% for 2028, primarily driven by higher expected net interest income and increased commissions.

Scenario Analysis Offers Range Of Outcomes

Citigroup’s bullish scenario values Eurobank shares at €6.10, implying potential upside of 64%. Its downside scenario projects a share price of €3.55, approximately 4.6% below the May 15 reference level. The optimistic case assumes a return on tangible equity one percentage point higher, alongside a 100 basis point reduction in the cost of equity. Meanwhile, the negative scenario assumes a 1.5 percentage point lower return combined with a 200 basis point increase in the cost of equity.

Solid Q1 Results Support Growth Targets

Eurobank reported normalized net profits of €351 million during the first quarter, broadly in line with market expectations. Reported net profit reached €331 million after a €35 million expense linked to a voluntary exit programme involving around 200 employees. The programme is expected to generate annual savings of approximately €14 million. Net interest income increased 3% quarter-on-quarter, exceeding consensus forecasts by 2% and supporting expectations that the bank could surpass its €2.6 billion target for 2026.

Looking Ahead: Ambitious Growth And Profitable Outlook

Organic loan growth reached €1.1 billion during the quarter, supporting management’s target for €3.8 billion in annual organic credit expansion. Fee income also rose 20% year-on-year, outperforming forecasts by 4%. Citigroup projects Eurobank’s net profit will reach €1.45 billion in 2026, with earnings per share of €0.40 and a dividend of €0.20 per share.

By 2028, the bank forecasts net profit of €1.76 billion alongside further improvement in profitability metrics and dividend yield. The revised projections reinforce expectations that Eurobank will continue benefiting from stronger lending activity, resilient fee income and improving operational efficiency.

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