Morgan Stanley Cuts Brent Forecast to $75 a Barrel

AI Summary

Morgan Stanley has significantly cut its Brent crude oil price forecast to $75 per barrel over the next 18 months, citing expectations of an oil supply glut spurred by the reopening of the Strait of Hormuz and high U.S. exports. Weak Chinese crude purchases further contribute to the anticipated market oversupply.

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…