Morgan Stanley Cuts Q3 Brent Crude Forecast to $90/Barrel on U.S.-Iran Hormuz Agreement

According to Morgan Stanley analysts on June 15, the firm slashed its Brent crude price forecast for the third quarter to $90 per barrel from $100 per barrel, citing a U.S.-Iran temporary agreement to reopen the Strait of Hormuz that is expected to boost regional oil production. The fourth-quarter forecast was also cut to $80 per barrel from the prior expectation of $95 per barrel.

Analysts including Martijn Rats expect regional production recovery to begin in mid-July, with 50% output restored by September and 80% by December, according to the report.