Morgan Stanley cuts Brent oil outlook again

According to media sources, Morgan Stanley cut its Brent crude price forecast for the second time in weeks , now predicting an average of $75/barrel for the fourth quarter. This revision follows a previous estimate of $80, down from an earlier outlook of $85.

Brent crude recently hit its lowest close since late 2021, driven by ongoing fears of weakened demand from China and indications of a slowing US economy. Oil supply remains high, leading OPEC to postpone plans to ease production cuts.

Morgan Stanley’s updated forecast aligns with similar warnings from other major banks. Goldman Sachs revised its predictions last month, and Citigroup has warned that the market may be oversupplied, projecting prices could average $60/barrel in 2025 unless OPEC implements more significant cuts.