Morgan Stanley has raised its quarterly outlook for Brent crude oil prices:
Expects Brent to average $82.50 per barrel in Q1 and Q2 2024
- were previously forecasting $80 and $77.50
- Q# and Q4 forecasts are $80 per barrel
Citing:
OPEC compliance has been encouraging so far, therefore expects a balanced oil market this year, vs. having expected a surplus earlier
- "Recent inventory declines suggest the oil market has been tighter than we initially expected"
- lowered its forecast for non-OPEC supply growth to 1.5 million from 1.7 million barrels per day (bpd)
- "Supply has been lower than expected, partly due to OPEC but also due to the U.S.."
Raised its global demand growth forecast to 1.5 million from 1.3 million bpd.
- demand remains robust
- flight schedules upward revisions point to stronger-than-expected jet fuel consumption this summer
