"Oil Prices Surge as Tensions Drive Market to New Highs"

Geopolitical tensions in the Middle East have driven crude oil futures to a five-month high, with WTI crude rallying to $86.76 per barrel and Brent May futures rising to $90.98. Despite the rally, Wall Street remains cautious about the oil price outlook, with analysts' Q2 Brent forecast of USD 94/bbl currently the only forecast above USD 90/bbl among 34 Wall Street forecasts. However, some analysts believe that oil fundamentals remain strong, and further price gains are expected in Q2-2024. Energy stocks have garnered momentum, with Morgan Stanley upgrading the sector to overweight from neutral, noting that energy companies have lagged the performance of oil and are favorably valued.