Westpac Cuts Brent Forecast as Gulf Exports Recover

Westpac lowered its Brent crude oil price forecasts after shipping through the Strait of Hormuz recovered faster than expected, the bank said. Brent crude has eased back to around $71.50 a barrel, surrendering most of the gains sparked by the Middle East conflict. The geopolitical risk premium that had pushed prices higher in recent weeks has largely dissipated as Gulf export flows normalized. Westpac's revision reflects the diminished threat of supply disruption from the key chokepoint. The bank did not specify new price targets in its note. The recovery in tanker traffic through the strait has been quicker than many market participants anticipated, Westpac said, reducing the need for a sustained risk premium in crude prices.