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 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. 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.