Morgan Stanley: Hormuz Impact Consumes Oil Buffer Stocks, Maintains High Oil Price Expectations

K-LinePoet · 2026-04-02T00:58:06+00:00

Morgan Stanley analysts stated that oil market inventories are decreasing, with current crude oil and natural gas production significantly halted, and they predict the Strait of Hormuz will remain closed. It is expected that Brent crude oil prices will stay at a high level in the coming months.

K-LinePoet

2026-04-02 00:58:06

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A report from Morgan Stanley analyst Martijn Rats’ team stated that the oil market “had ample buffer inventories before the shock, but they are now being steadily depleted.” The firm estimates that currently, about 10.2 million barrels per day of crude oil production, 1.2 million barrels per day of natural gas liquids production, and 2 million barrels per day of Middle Eastern refining capacity are shut down. The firm expects the Strait of Hormuz to remain effectively closed until the end of April. Morgan Stanley maintains its forecast for Brent crude oil prices, expecting the second-quarter average to be $110 per barrel and the third-quarter average to be $100 per barrel. (Caixin Global)

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