OPEC+ Risks Oil Slump Below $50 Without Deeper Supply Curbs
- Members signal they won’t cut deeper even though surplus looms
- Morgan Stanley sees crude sinking almost 30% to $45 a barrel
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With their next meeting just weeks away, OPEC and its partners are showing no impetus for stronger action to support oil prices. But without intervention, some influential forecasters say a new supply glut could send the market crashing early next year.
Crude prices, trading at about $62 a barrel in London, may tumble almost 30% to $45 a barrel if the Organization of Petroleum Exporting Countries and its allies don’t announce deeper production cutbacks, according to Morgan Stanley. Citigroup Inc. and BNP Paribas SA predict a slide to the low $50s.