Morgan Stanley Raises Dated Brent Forecast on High Shipping Costs

Dow Jones10-14

0902 GMT - Morgan Stanley raised its price forecast for Dated Brent--which reflects oil for actual physical delivery--by $5 a barrel, citing record-high tanker freight costs that are supporting prices despite a recovery in Gulf oil exports. Although Middle Eastern crude exports have recently rebounded, total supply from affected Gulf countries and Russia remains 5.5 million barrels a day below last year's levels, according to the bank. Low inventories and heightened geopolitical risks are adding further support. Meanwhile, tanker rates have surged as longer shipping routes, ship-to-ship transfers and sanctions restrict available capacity. Morgan now sees Dated Brent at $105 in the fourth quarter of this year and at $100 in the first quarter of 2027.

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