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Oil Seen `Lower for Longer' by Morgan Stanley as Forecasts Cut

  • Crude prices seen declining instead of climbing through 2016
  • Oil price recovery delayed by demand, supply, inventories
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Should Investors Continue to Short Oil?

Low oil prices will persist for longer than previously expected, according to Morgan Stanley, which reduced its quarterly crude forecasts for this year by as much as 51 percent.

Morgan Stanley now sees oil mostly falling through 2016, compared with a previous outlook for prices to rise each quarter, analysts including Adam Longson said in a report Thursday. Brent crude is expected to average $29 a barrel in the three months to December, compared with an estimate for $59 in a Jan. 18 note.