Morgan Stanley Cuts 2012 Brent Forecast to $100 From $130
Stock Chart for Morgan Stanley (MS)
Morgan Stanley (MS) said Brent oil will average $100 next year, down from a previous projection of $130, because of increasing supply and a weaker demand outlook.
Production capacity in the Organization of Petroleum Exporting Countries will climb almost 800,000 barrels a day in 2012, led by the return of Libyan fields, Morgan Stanley analysts led by New York-based Hussein Allidina said in a report today. Non-OPEC output will rise 225,000 barrels.
Slowing global economic growth will result in reducing demand growth, the analysts said. Consumption will advance 600,000 barrels a day in 2012, down from a 950,000 gain this year and 2.7 million barrel advance in 2010.
Brent oil for November settlement fell $3.33, or 3.1 percent, to end the session at $103.81 a barrel on the London- based ICE Futures Europe exchange today.
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