Oil will be above $100 in 2023-Morgan Stanley
2022.12.14 13:19
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Oil will be above $100 in 2023-Morgan Stanley
Budrigannews.com – (NYSE) Morgan Stanley On Wednesday, the company stated that it anticipates prices will rise to approximately $110 per barrel by the middle of 2023, citing support from rising demand and ongoing supply tightness.
The note from the U.S. investment bank stated, “We remain constructive on oil prices driven by recovering demand (China reopening, aviation recovering) amid constrained supply due to low levels of investment, risks to Russia supply, the end of SPR releases, and slowdown of U.S. shale.”
On Wednesday, oil prices increased as the International Energy Agency (IEA) and OPEC both predicted a rise in demand for the coming year. O/R]
Macroeconomic headwinds will drive the market into a slight oversupply and probable keep costs to some degree range-bounce through the principal quarter, the bank said.
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However, oil strategist Martijn Rats at Morgan Stanley expects the market to return to equilibrium in the second quarter and tighten further in the second half of 2023.
The bank anticipates that new gas supply will outpace demand next year, which will result in a looser balance and lower post-winter prices.
