Morgan Stanley lowered its oil price forecast amid a surge in supply from non-OPEC countries

WendyCS

2024-01-04 09:28:52

Huitong Financial News Analyst Martijn Rats reported that Morgan Stanley lowered its Brent crude oil price forecast for this year, cutting it by $5 to $80 per barrel in the first quarter. $7.50 to $77.5/b in Q2 and Q3 and $10 to $75/b in Q4. The downward revision is due to the fact that oil supplies from non-OPEC countries will exceed global oil demand. The bank expects global oil demand growth to slow to 1.2 million barrels per day by 2024 from 2.2 million barrels per day last year. "We expect a relatively precarious equilibrium in 2024. "OPEC demand will be reduced by about 600,000 b/d this year. It is expected that OPEC’s current production cuts may be extended until the end of the year and may even deepen. By 2025, oil prices could fall back to around $70 per barrel.

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