Morgan Stanley cuts forecast for Brent crude prices amid weak demand, OPEC+ production cuts
Date
9/11/2024 6:24:00 AM
(MENAFN) Morgan Stanley has recently revised its forecast for brent crude prices, marking the second downward adjustment in a matter of weeks due to ongoing challenges from weak demand in China and a persistent oversupply situation. The bank now projects that Brent crude will average USD75 per barrel in the fourth quarter of this year, down from its previous estimate of USD80, which itself was lowered last month from an initial forecast of USD85. Additionally, the forecast for next year's prices has been slightly reduced, with Citigroup previously anticipating an average of USD60 per barrel in 2025.
In response to the current market conditions, the Organization of the Petroleum Exporting Countries (OPEC) announced on Thursday that eight members of the OPEC+ alliance have agreed to extend their voluntary production cuts for an additional two months, extending through the end of November. The countries involved in this decision include Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman. OPEC's statement highlighted that these eight nations will maintain the additional voluntary cuts of 2.2 million barrels per day, reaffirming their commitment to ensuring full compliance with these production adjustments.
MENAFN11092024000045015682ID1108661407
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.