Morgan expects Brent to stabilize near $80 in 2024

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Morgan expects Brent to stabilize near $80 in 2024

Morgan Stanley predicts Brent crude prices will stabilize at $80 per barrel in H1 2024, declining by year-end as supply outpaces demand growth.

According to a note dated Wednesday, the bank predicts that global oil demand growth will decrease as the favorable factors accompanying the recovery from the COVID-19 pandemic recede. Morgan Stanley analysts expect oil demand to rise to 1.2 million barrels per day in 2024, a significant decrease from the expected 2.2 million barrels per day in 2023.

Non-OPEC supply growth is expected to decline, but at a slower pace. It is set to grow by about 1.7 million barrels per day in 2024, driven in part by production from the United States, Brazil, and Canada.

OPEC+ is set to hold a meeting on February 1 to review the recent decision to cut oil production.

Brent crude traded at $78.63 per barrel at 0440 GMT Thursday, while US West Texas Intermediate crude futures hit $73.22.