Oil Deficit Dalliance Seen Ending as Disrupted Crude Returns
- Surplus returning in July as outages moderate: Morgan Stanley
- Nigerian ceasefire risk to Goldman’s $50 oil forecast
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The oil market surplus that vanished last quarter, helping prices post the best quarter in seven years, may return as early as this month as disrupted supply starts to pump again.
Canadian output returning from outages caused by wildfires will be enough to put the market back into oversupply and oil may return to a trading range of $30 to $50 a barrel, according to Morgan Stanley. Goldman Sachs Group Inc. said that a recovery in Nigerian production is a risk to its $50-a-barrel forecast for the second half of 2016. The bank said earlier that the market had switched to deficit in May.