Morgan Stanley Cuts Brent Forecast to $75 a Barrel

Morgan Stanley has slashed its oil price forecasts for the next 18 month as it expects the reopening of the Strait of Hormuz to accelerate a new supply glut.

The return of oil supply from the Middle East, combined with high U.S. oil exports and still weak Chinese crude purchases, will bring the market full-circle to a new glut in the coming months, according to the bank's analysts, who slashed their oil price projections for the second time in two weeks.

Morgan Stanley now expects Dated Brent to average $75 per barrel in the third quarter this year, a downward revision of $15 a barrel from the previous forecast, in a note cited by Bloomberg.

The average Dated Brent price, the benchmark for physical transactions, is set to average $75 per barrel in the fourth quarter, too, according to the analysts. This is $5 a barrel lower compared to the previous projection from the middle of June, when Morgan Stanley and other major investment banks slashed their price forecasts after the U.S. and Iran signed a memorandum of understanding to negotiate a deal within 60 days.

Morgan Stanley now expects a Dated Brent price of $70 per barrel at the end of 2027.

"As attention turns to 2027, the

Fuente original: Yahoo Finance (https://finance.yahoo.com/energy/articles/morgan-stanley-cuts-brent-forecast-123000840.html)