Morgan Stanley Cuts Oil Forecast Again

Sep 9, 2024 thejournalbiz

Bank trims Brent price estimate to $75 for the fourth quarter.

Citigroup says the crude market looks oversupplied next year.

Tweet on Brent Crude price forecast

Morgan Stanley reduced its Brent crude price forecasts for the second time in a matter of weeks, as demand challenges mount while supplies remain plentiful.#oil #trade #crude #crisis pic.twitter.com/gQe3Gjq3sm

— The_Journalbiz (@the_journalbiz) September 9, 2024

Bloomberg chart

The global benchmark will average $75 a barrel in the fourth quarter, according to a note from analysts including Martijn Rats.

That compares with an earlier projection of $80 between October and December, which was issued just last month in a cut from the prior outlook for $85. Predictions for most of next year were also pared back slightly.

Brent recently tumbled to the lowest close since late 2021 as sustained concerns about weaker Chinese demand fused with signals that the US economy may be slowing. At the same time, output remains ample, forcing OPEC+ to defer a plan to relax its production curbs.