Morgan Stanley: The Price Of Brent Oil Will Rise To $50 In 2021
The price of Brent crude will rise to $50 a barrel in the second half of 2021, thanks to a weak dollar and higher inflation. This forecast was presented today, September 9, by analysts of the American Bank Morgan Stanley. The price of WTI crude oil will also rise in the third quarter of 2021 to $47.5 per barrel.
"The unprecedented expansion of the money supply weakens the dollar and puts upward pressure on inflation," Morgan Stanley notes. The Bank also forecasts a persistent shortage of supplies over the next year and expects stocks to return to normal by the end of 2021 as the global economy recovers.
Morgan Stanley moved to mid-2022 from the end of 2021, the forecast of when oil demand will reach the level that it was before the COVID-19 pandemic. The short-term Outlook, according to the Bank's analysts, looks rather weak due to weak recovery in demand, large reserves, and low refining margins.