Oil market has been undersupplied so far during 2021 – Morgan Stanley

Anil Panchal FXStreet

In its latest price forecast, the American investment bank Morgan Stanley revised up oil price forecasts for WTI and Brent starting from Q2 2021 until the end of the year.

The investment bank stated that the oil market has been undersupplied by 2.8 million barrels per day (mb/d) so far during 2021. The same becomes the main catalysts for their upward revision to the oil price predictions.

While the benchmark WTI is likely to average $62.5 versus $52.50 previous forecast in Q2, its British counterpart, Brent Oil, may print $65.00 compared to $55.00 earlier predictions.

The WTI prices are likely to accelerate to $67.5 during Q3 2021 before easing to $62.5 in Q4, the bank report suggests.

On the other hand, Brent could hit $70.00 in Q3 2021 and may step back to $65.00 by the last quarter of 2021.

Oil stays on the front foot...

The bank reoprt backs the oil bulls that cheer WTI's recent rally to the highest since February 18, whcih probed January 2020 peak.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.