PSX - Morgan Stanley tacks $10 risk premium to price forecast sees $125 oil in bull case

Sunday, Goldman raised their one-month Brent oil price forecast to $115, and Tuesday Morgan Stanley lifted their Q2 Brent forecast to $110 from $100, citing a geopolitical risk premium (NYSEARCA:USO) (NYSEARCA:XLE). Both banks highlight that war in Ukraine has yet to impact physical supplies, with both banks indicating markets are tight and inventories are falling, even with Russia producing at full capacity.  Morgan Stanley flags Iranian supply risk; however the bank already includes +1mb/d from Iran in their mid-2022 balances. With OPEC+ seemingly unable or unwilling to hit their self-imposed production targets, and US producers unable or unwilling to lift US supplies, many oil price strategists have pointed to the necessity of higher prices to reduce demand and return the market to balance (NYSE:VLO) (NYSE:PSX).   Famed oil trader Pierre Andurand recently tweeted that on an inflation adjusted basis, the 2008 oil price high of $147 would translate to a price

For further details see:

Morgan Stanley tacks $10 risk premium to price forecast, sees $125 oil in bull case