Jan 12 (Reuters) - Citi Research on Friday cut its Brent price forecasts for 2024 and 2025 due to oversupply concerns but highlighted that tension in the Middle East could result in near-term upside to the risk premium.

Citi lowered its 2024 Brent price prediction by $1 to $74 per barrel and slashed the 2025 forecast by $10 to $60 per barrel.

Oil prices surged 4% on Friday as the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea.

Brent crude futures were trading around $80 a barrel, while U.S. West Texas Intermediate crude futures were at $75 as of 1124 GMT.

Prices are likely to stay near $80 a barrel in 2024, a Reuters poll showed, as analysts predicted weak global growth would cap demand, while geopolitical tensions could provide support.

In November, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, agreed to voluntary output cuts totalling about 2.2 million barrels per day (bpd) for early this year led by Saudi Arabia rolling over its current voluntary cut.

"We model a significant 2025 surplus even if OPEC+ holds cuts to end-2025," Citi added in the note.

On Thursday, Barclays lowered its Brent crude prices forecast for this year by $8 to $85 per barrel, but noted that oil looks undervalued.

The following is a list of the latest brokerage forecasts for 2024 and 2025 average prices per barrel for Brent and WTI (in $ per barrel):

* indicates end-of-period forecast

# current as of given date, may not indicate date of revision

For a table of crude price forecasts as per Reuters latest monthly poll, see

https://www.reuters.com/markets/commodities/citi-lowers-2024-brent-price-forecast-74-per-barrel-2024-01-12/