Morgan Stanley Predicts Brent Crude to Reach $90 Per Barrel in Q3

Monday, 18 March 2024, 13:45

Analysts at Morgan Stanley have revised their Q3 assumptions, forecasting a rise in brent crude oil prices to $90 per barrel. The recent climb in oil prices and supply forecasts indicate a positive momentum, with a potential deficit expected in the upcoming quarters due to increasing demand. Despite geopolitical risks, Morgan Stanley believes that current oil prices may still have a risk discount based on fears of OPEC cohesion deteriorating.
https://store.livarava.com/67282eca-e52e-11ee-967d-5254a2021b2b.jpe
Morgan Stanley Predicts Brent Crude to Reach $90 Per Barrel in Q3

Morgan Stanley Forecasts $90 Brent Crude Price in Upcoming Quarter

There are some smiles in OPEC countries today as oil climbs another $0.60 and consolidates the recent break to the highs of the year. Analysts at Morgan Stanley see the upside momentum continuing. They've bumped up their assumptions for Q3 by $10 to $90 barrel for brent crude. Currently brent is trading at $85.85 with futures at $81.50 at the end of Q3. Morgan Stanley lowered its supply forecast for OPEC and Russia by 0.2-0.3 million barrel per day and sees a modest deficit in second quarter, increasing to a larger deficit in the third quarter as demand ramps up. For all the talk of geopolitical risks, Morgan Stanley believes there's actually a risk discount in oil based on fears that OPEC cohesion deteriorates.

"Every month that OPEC discipline remains in-place, Brent flat price will likely continue to catch up with where inventories and time spreads already are," MS writes.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe