New Delhi, June 22 -- Citing a shift in market fundamentals and the potential for a cooling of geopolitical tensions, Kotak Institutional Equities has revised its crude oil price outlook. The brokerage has lowered its Brent crude assumption to USD 85 per barrel for the current quarter, down from its previous estimate of USD 95 per barrel.

Kotak Institutional Equities noted that the West Asia crisis led to one of the largest supply disruptions in recent years, pushing oil prices sharply higher in March. However, as the disruption persisted and inventories declined, crude prices surprisingly continued to fall rather than rise further.

In its latest report, the brokerage house outlined a clear downward trajectory for oil prices as the year...