Morgan Stanley has lowered its price forecast for Brent crude

Morgan Stanley has lowered its price forecast for Brent crude


Moscow. February 4. Bank Morgan Stanley has revised the price forecast for the oil benchmark Brent crude in 2016 downwards, assuming that the quotes will gradually decrease until the end of the year, reports Bloomberg.

The Bank’s analysts downgraded the expectations of average prices for each of the quarters of the current year. Now forecasts of $31 per barrel in the first quarter, $30 per barrel in the second and third quarters, and $29 per barrel in the fourth quarter. Previously, it was expected that the barrel Brent will cost $42 in January-March, then the price will rise to $45 and $48 in the second and third quarters respectively, and will jump to $59 in October and December.

“The demand, which was weaker than expectations, and the proposal exceeds the forecasts, coupled with growing reserves, and active hedging postpone the rebalancing of the oil market”, – stated in the review of the Bank.

The current price of Brent crude is about $35 per barrel.