An oil price update via Reuters for Monday as the week opens

Comments from Morgan Stanley:

  • Say oil prices have likely bottomed out
  • But warn that a slowdown in economic growth and high production would prevent sharp rises
  • Add that cheap oil had not provided the economic boost to growth that many had hoped for
  • "Oil prices now seem to have bottomed, even though they are likely to stay subdued for the rest of this year before starting to move higher in 2017
  • "When oil prices are falling below production costs, the income gains for consumers will be smaller than the costs to producers and falling oil prices become a negative-sum game,"
  • MS is "no longer looking for an acceleration in 2016 GDP growth" and that the risk of a global recession was now 30%

Oil prices are a little lower this Monday in Asia