Morgan Stanley lowers Brent crude oil price forecast, warning of global oversupply risk

Morgan Stanley analyst Martijn Rats et al. lowered their Brent crude oil price forecast in a report due to faster than expected recovery of oil transportation in the Strait of Hormuz and strong US supply. The average spot Brent crude oil price for the third and fourth quarters is expected to be $75 per barrel, down $15 and $5 respectively from expectations. The oil price forecast for the four quarters next year has been lowered, and it is expected to drop to $70 by the end of 2027.