ICYMI – Morgan Stanley raised its Brent crude oil price forecast as high as $94 (from $90)

Morgan Stanley raised its Brent crude oil price forecast for Q2 to $92 /barrel (from $87.50)

• for Q3 of 2024 to $94 / barrel (from $90)

Citing geopolitical risk, and supply & demand issues:

• “That the degree of geopolitical risk in key oil producing regions has increased recently seems clear and uncontroversial,”

On supply being trimmed:

• OPEC+ last week kept its oil supply policy unchanged and advised some countries to increase compliance with output cuts

And:

• some downside to Russia production (Ukrainian strikes on Russian refineries may have disrupted more than 15% of Russian capacity)
• a seasonal upswing in demand ahead
• fading hope on Israel / Hamas ceasefire

Info via Reuters

This article was written by Eamonn Sheridan at www.forexlive.com.