The other day, Morgan Stanley’s experts made a gloomy forecast regarding the near-term future of the global crude oil market, Market Leader reports. In particular, the financial experts assume that the price of crude oil may well collapse down to $43 per barrel in the near future.
According to Masterforex-V Academy, one of the most reputable online sources in financial markets, today’s excessive supply in the global market of crude oil made the price go further down to the critical point. They believe that despite the current negative tendency shown by oil prices worldwide, the current state of affairs is far from matching all those doomsday scenarios.
As of today’s morning, the price of Brent oil futures dropped in value down to $68,11 per barrel. Meanwhile, the price for WTI January futures is also down. It is currently staying around $65,07 per barrel. Meanwhile, global markets are criticizing yesterday’s decision made by Saudi Arabia. this decision involves record-breaking discounts for oil export to the USA and some Asian states. More and more experts confirm that this are the biggest discounts since June 2000. They are afraid that by doing so, Saudi Arabia decided to increase its market share worldwide. If this is the case, other major players in the global crude oil market are definitely going to see their oil export incomes drop further down.
At the same time, other experts report about an increase in the US oil production. Apparently, altogether, these factors keep on expecting downward pressure on crude oil prices, which looks pretty straightforward and predictable, given the current geopolitical and economic situation as well as the USA’s ambitions to depress the economy of Russia, one of its major geopolitical opponents.
Indeed, the forecast for the fate of crude oil is getting gloomier. Morgan Stanley had to downgrade its Brent oil forecasts for 2015 and 2016 from 98 down to 70 dollars per barrel and from 102 down to 88 dollars per barrel respectively. Still, the worst-case scenario includes a drop own to $43 per barrel.
Meanwhile, more and more experts assume that the recent price drop in the global oil market has a lot to do with the OPEC’s latest decision to abstain from cutting down on their oil production. Altogether, they are still producing 30 million barrels a day, which makes the global supply be above the current global demand, Masterforex-V Academy reports.
