Morgan Stanley Cuts Brent Forecast to $90 as US-Iran Hormuz Deal Revives Supply
Updated
Updated · Bloomberg · Jun 16
Morgan Stanley Cuts Brent Forecast to $90 as US-Iran Hormuz Deal Revives Supply
2 articles · Updated · Bloomberg · Jun 16
Summary
Morgan Stanley lowered its Dated Brent forecast to an average $90 a barrel for the third quarter from $100, and to $80 for the fourth quarter.
The bank tied the cuts to an interim US-Iran deal to reopen the Strait of Hormuz, which it said should revive regional output and increase oil supplies.
Analysts including Martijn Rats said the expected recovery in Middle East production has been brought forward by one to two weeks.
The revised outlook points to faster supply normalization in a waterway critical to physical crude flows, easing the price pressure embedded in earlier forecasts.