Today Wednesday, Morgan Stanley expects Brent oil prices to rise to around $110 a barrel by mid-2023, indicating that prices are being supported by strong demand and continued crude oil shortages.
The investment bank said in a note: “We continue to expect oil prices to rise, supported by a recovery in demand after China eased coronavirus restrictions and a recovery in the aviation sector amid supply shortages due to low investment levels and supply risks. from Russia, stopping withdrawals from the Strategic Petroleum Reserve, and slowing U.S. shale oil production.”
Oil prices rose today, Wednesday, after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency expected a recovery in demand next year, Reuters reported.
The bank said macroeconomic headwinds will push the market into a slight oversupply and will likely keep prices in a certain range during the first quarter.
But Martin Rats, an oil analyst at Morgan Stanley, expects the market to rebalance in the second quarter and face an even bigger deficit in the second half of 2023.
For US gas, the Bank expects new supply to exceed demand next year, pushing the balance sheet down and creating negative post-winter price risks.
