Daily Management Review

Morgan Stanley downgrades oil prices forecast for 2019


Experts at Morgan Stanley lowered the forecast for oil prices for the second half of 2019 after OPEC + decided to extend the deal to reduce oil production by the end of March 2020.

Alexander van Dijk via flickr
Alexander van Dijk via flickr
Now analysts predict that Brent oil will cost an average of $ 65 per barrel compared to the previously expected $ 67.5 per barrel. For WTI, the forecast was lowered to $ 60 per barrel from $ 65 per barrel, according to a press release from the bank.

“After a recent extension, the OPEC + agreement will enter its fourth year — an unusually long period of production cuts. This prevents further overproduction, but at the expense of a significant market share for OPEC. If history can serve as a guide, this leads to a decrease in oil prices than growth ", - the bank’s experts say.

September futures for Brent crude on the London ICE Futures Exchange rose by $ 0.48 (0.77%) to $ 62.88 a barrel.

WTI crude oil futures for August on the New York Mercantile Exchange (NYMEX) by this time rose $ 0.43 (0.76%) to $ 56.68 a barrel.

source: bloomberg.com