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Globe & Mail

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Morgan Stanley expects oil at $100 a barrel in second half of year

Morgan Stanley 

increase

  expects Brent crude oil prices to advance to $100 a barrel in the second half of this year, with the market heading for a simultaneous “triple deficit” of inventories, spare capacity and investment.

 

“The key oil products markets (gasoline, jet fuel and gasoil/diesel) all show strong crack spreads, steep backwardation and inventories that have fallen to low levels. None of this signals weakness,” it said in a note.

The bank raised its price forecasts for Brent crude to $100 a barrel for the last two quarters of the year, up from the $90 and $87.50 previously estimated for the third and fourth quarters respectively.

Brent crude futures were trading at about $88 a barrel on Friday, while U.S. West Texas Intermediate (WTI) crude was at $85. Both benchmarks are on track for a fifth consecutive weekly gain.

Morgan Stanley’s projection chimes with those of other investments banks, including Goldman Sachs, in predicting oil prices could hit $100 per barrel this year.

 

[Bigpond]

I am assuming that Russia vs Ukraine war will push the oil prices in weeks to come. This week has been frustrating due to Biden's barking followed by engineered weekly inventory report. Oil stocks unnecessarily followed the so called Nasdaq correction which in fact has to do with traders doing rinse and repeat since they got used to it in last two years. GLTA