New Delhi, June 30 -- Morgan Stanley has cut its oil forecasts for the second time in the span of two weeks after flows through the Strait of Hormuz returned to normal faster than it was earlier anticipated while US supplies are strong but the demand in weak in China, thus raising the risk of a possible oil glut in the global market.

Dated Brent, which is a benchmark for physical transactions, will likely average $75 a barrel in the 3rd as well as 4th quarters, thus going down by $15 and $5, respectively, as per analysts like Martijn Rats, Bloomberg reported. Outlooks for all the four quarters of the next financial year have also been cut, and Dated is predicted to be at $70 at the end of 2027.

"The Strait is reopening faster than expec...