Morgan Stanley Sees $150/Barrel WTI by July 4

Morgan Stanley Friday said that crude oil shipping patterns could result in prices of $150 a barrel for West Texas Intermediate (WTI) oil by July 4.

The firm said distribution patterns out of the Middle East were mimicking ones seen in the prior year, when it made a similar prediction for a short-term price spike.


Morgan Stanley said the only difference in its call compared to last year
was that now it was starting from a tighter Atlantic Basic inventory backdrop.

“Based on current distribution patterns, we are unlikely to break this trend of sharply drawing inventories on ’surprisingly low imports’ anytime soon,” the firm wrote, adding that further fuel subsidy cuts were unlikely as most subsidies occur in net oil exporting regions.

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