Morgan Stanley has raised its Brent oil price forecasts, saying the market could remain under-supplied for several quarters especially after Saudi-Russian output cuts, but said prices above $100 a barrel would seem "stretched."
The bank increased its fourth-quarter Brent forecast to $95 a barrel from $82.5.
It also upped its outlook by $12.5 to $92.5 a barrel for the first quarter of 2024, by $10 to $90 for the second, by $7.5 to $87.5 for the third, and by $5 to $85 for the fourth.
The global benchmark was trading around $93 a barrel on Thursday.
On Tuesday, oil prices reached their highest in 10 months, prompted by extended production cuts from Saudi Arabia and Russia.
"With these cuts, fundamentals are clearly tighter-for-longer and prices are well supported," Morgan Stanley said in a note dated Wednesday, adding prices were well supported around current levels as long as the market remained in deficit.
Goldman Sachs on Wednesday said producer group OPEC could sustain Brent crude prices in a range between $80 and $105 per barrel in 2024, on growing oil demand and extended supply cuts.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Mark Potter)