Lates News

Morgan Stanley has raised its short-term crude oil price forecasts after OPEC+ decided to suspend production increases in the first quarter of next year. The bank said on Monday that it has raised its Brent crude price forecast to $60 per barrel in the first half of 2026, up from the previous forecast of $57.5 per barrel. Analysts including Martijn Rats and Charlotte Firkins said in a report, "Even though OPEC's announcement did not change our production expectations, it still sent an important signal. With OPEC's involvement, market volatility is reduced." Morgan Stanley also pointed out that there is a "significant gap" widening between OPEC quotas and actual production. The bank's forecasts show that OPEC members' production increased by 500,000 barrels per day from March to October, far below the announced quota increase of 2.6 million barrels per day. Morgan Stanley said it expects the oversupply issue to be balanced in the second half of 2027, when oil prices are expected to rise to $65.