Morgan Stanley oil forecasts revised higher, $70 peak in Q3

MS precede their price forecast by saying "one of the lessons of the oil market over the last decade - and again in 2020 - is that momentum typically carries on for longer than expected.

• H2 of 2021 will see demand recovery likely to be in full swing
• Brent H2 forecast $65-70 /bbl
• $70 peak in Q3
• H1 2022 Brent forecast is $60 (from 55 prior)

MS cite undersupply, Q1 could be one of the most undersupplied quarters since at least 2000 they say. Mobility stats are bottoming out, demand is set to improve from here.

(ps. WTI forecasts from MS are here from earlier today:

• Morgan Stanley bumps its oil price forecast higher, Q2 WTI now projected at US$62.50 (from 52.50)

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