Morgan Stanley sees tighter oil market, raises Brent forecast
Tuesday, May 26, 2020
(Reuters) - Morgan Stanley on Tuesday raised its year-end Brent price forecast to $40 per barrel, citing a faster-than-expected balance in global oil demand and supply as countries ease coronavirus restrictions and major producers cut supply.
"We expect demand to rebound to about 97 million barrels per day (bpd) by Q4 as economies come out of lockdown - a significant improvement although still down about 4 million bpd year-on-year," the bank said.
The bank further expects supply to decline towards year-end across both the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC, and said that will lead to an oil market that is 4 million-6 million bpd undersupplied during Q4 2020 and Q1 2021.