Crude oil price steadies after biggest drop in two weeks; Morgan Stanley cuts forecast

Crude oil prices steadied on Tuesday after a nearly 5% drop on Monday following a US-Iran memorandum of understanding, with Brent crude at $83.42/barrel and WTI at $81.12/barrel. However, Morgan Stanley cut its Brent forecast to $90/bbl for Q3 (from $100) and $80/bbl for Q4 (down $15), citing expected restoration of supply through the Strait of Hormuz with 50% production back by September and 80% by December.