Morgan Stanley Optimistic about Global Oil Markets in 2024
Morgan Stanley analysts have adopted a more positive outlook for global oil markets in 2024, citing recent inventory decreases and revising their estimates for demand growth. The investment bank’s analysts highlighted that the oil market has been tighter than expected, which has significant implications for the future. They attributed the lower supply to both OPEC and the United States.
The report indicates that oil demand seems to be solid and predicts that flight schedules for the upcoming summer will result in noteworthy increases in jet fuel consumption. As a result, Morgan Stanley has raised its estimate for crude demand growth in 2024 from 1.3 million barrels a day to 1.5 million barrels a day. Conversely, the forecast for non-OPEC supply growth has been trimmed from 1.7 million barrels a day to 1.5 million barrels a day.
Morgan Stanley’s analysts are encouraged by OPEC’s solid compliance thus far and expect the oil market to remain balanced for the rest of the year, instead of being in a small surplus as previously predicted. In light of this, they have increased their anticipated price range for Brent to between $80 and $85 a barrel, up from the previous range of $75 to $80 a barrel.
In conclusion, Morgan Stanley’s latest report suggests a more favorable outlook for global oil markets in 2024. The investment bank expects demand to strengthen while reducing their estimate for non-OPEC supply. With these factors in mind, they anticipate the oil market to remain in a balanced state and have adjusted their predicted price range accordingly.
Analyst comment
Positive news – Morgan Stanley is optimistic about global oil markets in 2024, citing recent inventory decreases and higher demand growth estimates. They expect solid oil demand and increased jet fuel consumption due to summer flight schedules. They have raised their estimate for crude demand growth and anticipate OPEC’s compliance and a balanced market. As a result, they have increased their anticipated price range for Brent.
