Lates News

Morgan Stanley has significantly lowered its forecast for oil prices in the coming quarters due to the temporary agreement between the US and Iran to reopen the Strait of Hormuz, which is expected to restore regional oil production and increase supply. Analysts, including Martijn Rats, stated in a report on June 15th that they anticipate the average price of Brent crude oil in the third quarter to be $90 per barrel, down from their previous forecast of $100 per barrel. They also lowered their forecast for the last three months of the year to $80 per barrel, a decrease of $15 from their previous projection. They noted that the expected time for the recovery of production in the Middle East has been moved up by one to two weeks. They stated, "There are still many issues to be discussed, key risks remain, but this is an important step towards easing the conflict and increasing oil exports through the Strait of Hormuz." They added, "We expect production to gradually resume from mid-July and anticipate a 50% recovery by September, an 80% recovery by December, with the rest gradually recovering in early 2027."