Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Morgan Stanley cuts Q1 2022 Brent oil forecast on Omicron risks

11/29/2021 | 06:26am EST

Nov 29 (Reuters) - Morgan Stanley on Monday cut its first quarter 2022 Brent crude price forecast to $82.50 per barrel from $95 on market expectations that the Omicron coronavirus variant could turn into a major headwind for oil demand.

The market appears to be pricing in the possibility that the new variant could prompt restrictions and cut oil demand, amid expectations of oversupply driven by planned release from the Strategic Petroleum Reserve adding to monthly output from the Organization of the Petroleum Exporting Countries and allies (OPEC+), the bank said in a note.

Oil rebounded by almost 5% on Monday to $76 a barrel as some investors viewed Friday's more than 10% slump in oil on concern about the Omicron coronavirus variant as overdone.

But while the beginning of next year could see excess supply, spare oil capacity was likely to be eroded by the end of 2022 as inventories draw down further from already low levels.

OPEC+ may not increase supply by 400,000 barrels per day (bpd) since the group does not have the capacity to do so, nor the incentive to oversupply the market, the bank said, adding the market was expected to be more under-supplied in 2022 than the International Energy Agency has suggested.

"Brent prices rising above recent highs again is probably something from mid 2022 and beyond," the bank said, while raising its third quarter Brent outlook to $90 a barrel from $85.

The market could see a supply deficit in 2023 that would deepen further, it added. (Reporting by Seher Dareen and Arpan Varghese, editing by David Evans)


ę Reuters 2021
Latest news "Economy & Forex"
12:04aThich Nhat Hanh, poetic peace activist and master of mindfulness, dies at 95
RE
12:03aSouthern Japan earthquake injures 13, no tsunami warning
RE
01/22China's Harbin to conduct city-wide COVID tests ahead of long holiday
RE
01/21Fire kills two in high-rise building in Mumbai, 15 injured
RE
01/21Thich Nhat Hanh, poetic peace activist and master of mindfulness, dies at 95
RE
01/21China's Harbin to conduct city-wide COVID tests ahead of long holiday
RE
01/21India's daily COVID cases rise by 337,704 in last 24 hours - govt
RE
01/21'Our city against the killers,' New York mayor says after policeman killed
RE
01/21Khazanah to more actively create value for portfolio firms - The Edge Weekly
RE
01/21U.S. suspends 44 U.S flights by Chinese carriers after China action
RE
Latest news "Economy & Forex"