Brent Crude Surpasses $100 as Morgan Stanley Warns of Oil-Related Stock Risks

Brent crude oil prices have surpassed $100 per barrel for the first time since July, driven by renewed Middle East fighting and fears of supply disruptions.

Morgan Stanley analysts, led by chief U.S. equity strategist Mike Wilson, warn that higher oil prices and interest rates remain a major risk to stocks in the near term.

Wilson has previously cautioned that rising crude tends to hurt stocks more than falling prices help them, and that another spike could squeeze corporate margins and push yields higher.

The energy sector has rallied with crude as investors position for higher prices, with Exxon Mobil Corp. (NYSE:XOM) up around 33% this year and Chevron Corp. (NYSE:CVX) up about 38%.