Oil prices tumble further after Morgan Stanley cuts forecast
Source: CNBC
Oil prices fell to a five-year low on Monday, after Morgan Stanley cut its 2015 forecast for Brent crude, citing oversupply.
The bank said crude prices could average as little as $53 per barrel in 2015, although its base case scenario was for $70. This was down from an earlier estimate of $98.
"Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015. Prices are set up to fall in the first half of 2015," said analysts Adam Longson and Elizabeth Volynsky in a report out late on Friday.
The price of crude has declined by around 40 percent since June, with Brent futures hitting $67.52 on Monday its lowest level since October 2009.
Read more: http://www.cnbc.com/id/102247766
louis-t
(23,295 posts)The big investors are panicking and fleeing, the banksters are saying "IT'S BOTTOMING OUT, DON'T LEAVE!1!1!1"
Citi was screaming with their hair on fire last week that $70 was the absolute bottom.
okaawhatever
(9,462 posts)citizen. Enjoy folks....
dixiegrrrrl
(60,010 posts)I nm confident that the banks will figure out a way to capture the market and raise prices, tho.
Might take them awhile, but they will manage.
Can't have any of that "surplus=lower prices" stuff going on, ya know.
Gallon of regular is 2.38 today in my lil town.
IDemo
(16,926 posts)for the inevitable rebound next year?
quadrature
(2,049 posts)what you are buying is...
today's price, plus storage cost.
storage is not cheap
(or not usually cheap)
you have to pay to rent** storage facilities
(** that price gets built into the price of a call)
..........
with that said,
you might want to look at
a 'passive long' commodity fund