Bloomberg News

Brent May Fall to $75 on Weak Demand, Morgan Stanley Says

January 09, 2012

Jan. 9 (Bloomberg) -- Brent oil may fall as low as $75 in 2012 as demand weakens and Middle East geopolitical tension eases, Morgan Stanley analysts said.

Prices may average $100 this year, with a high of $115 and a low of $75, analysts including Hussein Allidina said in a report dated yesterday.

“The deterioration in fundamentals should accelerate as we move into seasonally weaker demand in the months ahead,” the analysts said. “If Mideast tensions recede, the risk premium built into crude is likely to fade, sending prices lower.”

To contact the reporter on this story: Moming Zhou in New York at mzhou29@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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