Morgan Stanley has increased its near-term Brent crude oil price forecast to $60 per barrel for the first half of 2026, up from $57.50, following OPEC+'s decision to pause production increases. The cartel and its allies announced on Sunday they would halt output hikes in the first quarter of next year, marking the first such pause since April, which is expected to tighten supply.
Morgan Stanley has upgraded its near-term Brent crude oil price forecast to $60 per barrel for the first half of 2026, an increase from its prior estimate of $57.50. This revision signals a more bullish outlook for crude prices, driven by recent supply-side dynamics. The primary driver for this upward adjustment is OPEC+'s decision to pause production increases during the first quarter of next year. This marks the first such halt since April, indicating a strategic shift by the cartel to manage global oil supply. This anticipated supply tightening is expected to exert upward pressure on crude prices, aligning with the "moderately positive" sentiment and "bullish" tone observed in market reactions. The proactive stance by OPEC+ to stabilize the market through supply management is a key factor for energy market participants.
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moderately positive
Sentiment Score
0.55
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