Morgan Stanley Expects Oil at $100 a Barrel in Second Half of 2022

The investment bank said key oil products markets are showing "steep backwardation and inventories that have fallen to low levels."

Reuters

Morgan Stanley expects Brent crude oil prices to advance to $100 a barrel in the second half of this year, with the market heading for a simultaneous "triple deficit" of inventories, spare capacity and investment.

"The key oil products markets (gasoline, jet fuel and gasoil/diesel) all show strong crack spreads, steep backwardation and inventories that have fallen to low levels. None of this signals weakness," it said in a note.

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