Brent crude to be well supported near $80/bbl: Morgan Stanley
Morgan Stanley raised its Brent price forecast for the third quarter to $85 per barrel from $75, and for the fourth quarter to $82.50 from $70. The global benchmark was trading around $84 a barrel on Friday.
Morgan Stanley expects Brent crude prices to be well supported around $80 per barrel as the oil market is likely to remain in a deficit in the second of half of 2023 before returning to a small surplus next year.
"Strong refined products markets and deep OPEC cuts have been supporting crude oil prices," analysts at the bank said in a note dated Thursday.
Morgan Stanley raised its Brent price forecast for the third quarter to $85 per barrel from $75, and for the fourth quarter to $82.50 from $70. The global benchmark was trading around $84 a barrel on Friday.
Although OPEC's production cuts will have a bullish impact on oil prices in the near future, spare capacity is at its highest in 20 years and a decline in the group's market share could weigh on prices in the longer term, the bank said.
Saudi Arabia is extending its voluntary oil output cut of one million barrels per day into September, with the kingdom saying it could keep it in place beyond that and even deepen it.
Morgan Stanley raised its 2023 oil demand forecast to 2.1 million barrels per day from 1.8 million.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 7 SIP Mutual Funds in 1 Year: What Rs 10,000, Rs 15,000, and Rs 20,000 SIPs have given in each fund
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal hits record high breaches Rs 87,000 mark
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
09:29 AM IST