The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InWith the Strait of Hormuz flows recovering faster than expected, Morgan Stanley has trimmed its oil price forecasts, signaling a decline in the supply risk premium. According to Bloomberg reports, the bank cut its Brent crude forecast for Q3 2026 to $82 per barrel from $86, and its Q4 forecast to $78 from $82. At the time of reporting, Brent crude was trading at $73.15 a barrel, down 1.0%.
The revision reflects the rapid easing of supply disruptions that had lifted prices in recent months. EIA data showed crude inventories fell by 6.1 million barrels last week, but the market is focused on the restoration of flows through the vital chokepoint. Analysts suggest the revised forecasts could prompt other investment banks to lower their projections.
Brent crude currently trades below $74, as markets await OPEC+ production developments and weekly inventory data. With no major economic events in the coming week, prices may remain under pressure as Hormuz supplies continue to normalize.