Morgan Stanley reduces its oil price forecasts after assessing that crude flows through the Strait of Hormuz are returning faster than expected. The bank’s updated outlook points to continued disruptions having less impact on near-term supply than previously assumed, as shipping volumes normalize through the chokepoint. At the same time, Morgan Stanley highlights factors that could weigh on prices even as Hormuz flows recover. It cites strong oil supply from the United States, which adds to overall market availability. On the demand side, the bank notes weak demand conditions in China, where consumption growth appears to be under pressure. Taken together, these developments increase the risk that the market could move toward a surplus, pressuring prices. Both sources describing the update characterize it as a forecast cut driven by faster-than-expected supply restoration through Hormuz, combined with a mix of ample U.S. supply and softer Chinese demand. The reports do not specify the exact forecast levels or time horizon affected, but they agree on the core drivers behind the change.