Morgan Stanley Analysts Predict $20 Oil
Brent Crude Drops Below 2008 Lows
Prices Near $31/Barrel Today
Nicole Friedman writes in The Wall Street Journal:
Brent, the global benchmark, fell $2, or 6%, to $31.55 a barrel on ICE Futures Europe, at the lowest level since April 6, 2004.
The global crude market is expected to become more oversupplied as soon as this month if sanctions are lifted on Iran, allowing the country to increase its oil exports.
“I don’t see the catalyst that’s going to stop us from falling, at this point,” said Scott Shelton, broker at ICAP. While gasoline consumption was robust last year, he said, warm weather and sluggish economic growth has limited demand growth for diesel, heating oil and other fuels. “I’m looking for evidence of [diesel] demand or evidence of supply dropping, and I have yet to see it.”