Oil market has been undersupplied so far during 2021 – Morgan Stanley

1 week ago 3

In its latest price forecast, the American investment bank Morgan Stanley revised up oil price forecasts for WTI and Brent starting from Q2 2021 until the end of the year.

The investment bank stated that the oil market has been undersupplied by 2.8 million barrels per day (mb/d) so far during 2021. The same becomes the main catalysts for their upward revision to the oil price predictions.

While the benchmark WTI is likely to average $62.5 versus $52.50 previous forecast in Q2, its British counterpart, Brent Oil, may print $65.00 compared to $55.00 earlier predictions.

The WTI prices are likely to accelerate to $67.5 during Q3 2021 before easing to $62.5 in Q4, the bank report suggests.

On the other hand, Brent could hit $70.00 in Q3 2021 and may step back to $65.00 by the last quarter of 2021.

Oil stays on the front foot...

The bank reoprt backs the oil bulls that cheer WTI's recent rally to the highest since February 18, whcih probed January 2020 peak.

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