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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
With global oil supply disruption risks easing, Morgan Stanley lowered its crude price forecast for this year and next. According to reports, the downgrade reflects the faster-than-expected reopening of the Strait of Hormuz, a critical chokepoint for oil shipments, which reduces the geopolitical risk premium embedded in prices.
The Strait of Hormuz is one of the world's most vital oil transit routes, handling about 20% of global supply. Its swift reopening is expected to restore a significant portion of lost export capacity as political and operational hurdles are cleared. This comes amid growing concerns over slowing demand, further tilting the price outlook to the downside.
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Sign InLooking ahead, markets are watching weekly US inventory data and any signals from the OPEC+ alliance on output adjustments. Central bank meetings and their implications for demand will also be in focus. If supply flows continue to improve, crude prices may face sustained bearish pressure in the near term.