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Morgan Stanley Raises Oil Forecasts by $10 Citing Market Deficit

  • Tighter balances seen on risk of Russia, Iran supply shortfall
  • Supply concerns offset reduction in global demand growth
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Oil Analyst Sen Sees Rising Risk as SPR Impact Fades

Morgan Stanley increased its third- and fourth-quarter price forecasts for global benchmark Brent crude by $10 a barrel due to a greater-than-expected supply deficit driven by Russia and Iran.

The bank raised its third quarter estimate to $130 a barrel and predicted a supply deficit of about 1 million barrels a day persisting throughout the year, according to a note dated April 21. While oil markets have short-term demand headwinds, they are outweighed by supply issues, it added.