MORGAN STANLEY CUTS OIL PRICE FORECASTS AS HORMUZ STRAIT REOPENS

Morgan Stanley has reduced its oil price forecasts for this year and next, citing a faster-than-expected reopening of the Strait of Hormuz. The investment bank's oil analysts attributed the downward revision to the accelerating return of flows through the strategic waterway. The Strait of Hormuz is a critical chokepoint for global oil shipments, and disruptions to traffic through it typically support higher crude prices.

Morgan Stanley identified additional downward pressure on oil markets beyond the Strait of Hormuz reopening. Strong United States supply and weak Chinese demand have increased the risk of an oil market surplus, according to the bank's analysis. These factors combined with the faster recovery of Hormuz flows have prompted the revision to the bank's price outlook across both forecast periods.

The cuts reflect Morgan Stanley's assessment of current market conditions and near-term supply dynamics. The bank did not disclose specific price targets in the available statements. The forecasts suggest oil markets face headwinds from both supply increases and demand weakness in coming months.