Morgan Stanley raises near-term Brent forecasts as geopolitical risk premium is likely to persist, but expects prices to fall below USD 60/bbl later this year

Morgan Stanley's upgrade of near-term Brent forecasts indicates elevated geopolitical risks are sustaining prices, reflecting a shift in market sentiment.

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Morgan Stanley raises near-term Brent forecasts as geopolitical risk premium is likely to persist, but expects prices to fall below USD 60/bbl later this year

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However, their expectation for prices to dip below USD 60/bbl later this year suggests a possible normalization in supply-demand dynamics, which could impact inflation expectations and related FX markets. Traders should monitor how sustained geopolitical tensions influence this outlook and the broader commodity landscape.

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