Why Are BATL, ANNA Stocks Surging Today?

• Morgan Stanley maintained its crude oil forecast unchanged on Monday at $110 a barrel for the second quarter of 2026 and $100 for the third quarter
• The firm expects oil supply chains to take months to normalize, even after the Strait of Hormuz is opened.
• AleAnna Shares surged about 75% year to date, while Battalion Oil Corporation soared over 183% during the same period.

Shares of Battalion Oil Corporation (BATL) and Ale Anna Inc. (ANNA) rallied on Monday morning as Trump’s embargo on the Strait of Hormuz nears and Morgan Stanley’s fresh commentary on the slower recovery of oil supply chains further stoked supply fears.

Over the weekend, the U.S. Central Command said that the enforcement of maritime restrictions tied to Iranian exports would begin at 10 a.m. ET Monday. 

On Monday morning, West Texas Intermediate (WTI) crude rose 7.7% to $104 per barrel while Brent Crude climbed 7.43% to $102.27 a barrel.

Battalion Oil is a Delaware Basin oil producer in the United States that benefits from the current oil supply squeeze in the Middle East.

AleAnna is a natural gas company that operates in Italy’s Po Valley. Since broader European energy buyers are avoiding Russian oil and gas amid the conflict at key Middle Eastern sites, ANNA’s Italian gas fields offer a stable and secure alternative for European stakeholders. 

Morgan Stanley’s Crude Oil Forecast

According to a Reuters report, Morgan Stanley, in its latest forecast, said it expected oil prices to reach $110 per barrel in the second quarter of 2026 and $100 per barrel in the third quarter of the same year.  The bank expected the price to stabilize at about $80 per barrel in 2027.

In its forecast, Morgan Stanley also highlighted that oil supply chains will take months to return to normal even after the reopening of the Strait of Hormuz. It said that, in a base-case scenario, exports through the Strait of Hormuz will remain low in April and will only recover 70% of the lost volumes between May and July, with a return to normal levels taking until October.

OPEC Report In Focus After Hormuz Disruptions

The traffic through the Strait of Hormuz has been highly restricted since the war began, as a result, alternative export corridors have become increasingly important. Saudi Arabia announced it has restored full capacity through its East-West pipeline to Red Sea port of Yanbu and resumed output from the Manifa field after it suffered damages due to the earlier strikes from Iran. 

Meanwhile, OPEC is set to release its monthly market report on Monday, which  could shed light on supply disruptions across the Middle East’s energy infrastructure. 

How Did Retail Traders React?

On Stocktwits, the retail sentiment surrounding BATL remains ‘Bullish’ amid ‘High’ message volumes.

For ANNA, retail sentiment trended in ‘bearish’ territory with message volumes slipping to ‘Extremely Low’ from ‘Low’ a day ago.

Year to date, shares of ANNA rose 75% while those of BATL rose about 183%.

USO surged about 80% since the beginning of the year, while INDO gained about 5% during the period. 

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