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Morgan Stanley sees Brent prices at $70/bbl in 2015

The investment bank cut its average 2015 Brent base case outlook by USD 28 to USD 70 per barrel and for 2016, by USD 14 to USD 88 a barrel. The bank expected over-supply to peak in the second half of next year.

Morgan Stanley sees Brent prices at $  70/bbl in 2015

Morgan Stanley on Friday slashed its Brent price forecasts, citing oversupply and inaction by the Organization of the Petroleum Exporting Countries in curbing production.

The investment bank cut its average 2015 Brent base case outlook by USD 28 to USD 70 per barrel and for 2016, by USD 14 to USD 88 a barrel. The bank expected over-supply to peak in the second half of next year.

“Unlike 2009, this is a self-inflicted ‘crisis’, and the coming oversupply is grossly exaggerated. With only a modest fix required, the market is complacent about potential upside risk, particularly in light of lower prices,” analyst Adam Longson said in a note.

US crude oil closed on Friday at its lowest since July 2009, as Brent averaged below USD 70 a barrel in the week for the first time since 2010, as strong US employment data did little to lift the oil market’s bearish mood.

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