# European Energy Sector Rating Downgraded

According to Morgan Stanley's assessment, growth in European energy company stocks is less likely. The bank believes that oil prices are unlikely to rise sharply in the near term. As a result, the bank has revised its rating on European energy companies.

One of the main reasons for this decision is the agreement reached between the US and Iran, as a result of which the situation in the Strait of Hormuz has stabilized to some extent. According to analysts, a reduction in regional tensions reduces the chances of a sharp increase in oil prices.

Currently, Brent crude oil costs approximately $77 per barrel. Morgan Stanley assumes that in the coming years, the price will remain within $80.

The bank removed several major energy companies from its list of recommended stocks, including TotalEnergies, Aker BP, Repsol, OMV, Tenaris, and Neste.

Source: Investing.com