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Morgan Stanley expects Brent crude oil prices to rise to $ 100 a barrel in the second half of this year, with the market heading for a “triple deficit” in inventories, reserves and investments.
“The major petroleum product markets (gasoline, jet fuel, and gasoline / diesel) all show strong cracks, rapid backwardation, and low inventories. It does not indicate weakness, “he said in a memo.
Banks have raised their Brent crude price forecast to $ 100 a barrel in the last two quarters of this year. This is from the previously estimated $ 90 and $ 87.50 in the third and fourth quarters, respectively.
Brent crude oil futures were trading at around $ 88 a barrel on Friday, while West Texas Intermediate (WTI) crude was $ 85. Both benchmarks are on track for the fifth straight week of growth.
Morgan Stanley’s forecasts are in line with those of other investment banks, including Goldman Sachs, and oil prices could reach $ 100 a barrel this year.
(Report by Swati Verma edited by David Goodman in Bangalore)
https://www.oedigital.com/news/493697-triple-deficit-morgan-stanley-expects-100-a-barrel-in-2h-2022 Morgan Stanley expects $ 100