Morgan Stanley raises short-term Brent price forecasts

Morgan Stanley raised its short-term forecasts for Brent crude prices

Morgan Stanley raised its short-term forecasts for Brent crude prices, citing the likelihood that a geopolitical risk premium will persist in energy markets, while maintaining its view that prices will fall below $60 a barrel later this year.

In a note cited by Reuters, the bank lifted its Brent price forecast for the first quarter to $62.5 a barrel from a previous estimate of $57.5. It also raised its second-quarter forecast to $57.5 a barrel from $55 previously.

The bank attributed the upward revision to the expectation that risks linked to geopolitical conflicts will persist for longer than previously anticipated, supporting a near-term price risk premium.