Morgan Stanley Cuts Oil Price Forecast Again as Global Supply Surges

The global oil market is rapidly losing momentum. Morgan Stanley has cut its price forecasts for the second time in two weeks, pointing to a growing surplus of crude oil. The reopening of the Strait of Hormuz is progressing faster than analysts had expected. At the same time, U.S. oil production continues to reach record levels, while demand across Asia is weakening. The result is a market with more barrels than buyers. Morgan Stanley Lowers Brent Price Outlook The bank has revised its forecast for Brent crude. Physical Brent is now expected to average $75 per barrel during both the third and fourth quarters of 2026, representing reductions of $15 and $5 respectively from previous estimates. Looking further ahead, Morgan Stanley expects prices to decline to $70 per barrel by the end of 2027. "We are seeing a classic case of overproduction. When supply floods storage facilities, prices inevitably capitulate. At the moment, the market has no meaningful drivers for growth-only downside risks," macroeconomist Artyom Loginov said in comments to Pravda.Ru.