Morgan Stanley expects OPEC to curb production and balance ‎the market

Morgan Stanley expects the price of a barrel of Brent crude to remain supported at levels around $85, as it is expected that the OPEC producer group will continue to curb production and stabilize oil inventories to a large extent at current levels.

According to Reuters, analysts at the bank said that the market does not have much capacity to absorb more OPEC oil, adding that they pegged the demand for OPEC oil in 2024 at 28.3 million barrels per day, without a change in the level of demand for the fourth year in a row.

The bank’s analysts now assume that Saudi Arabia will extend the voluntary cuts further until the end of the second quarter of next year, with its production rising only gradually during the second half, but it will maintain production below its official OPEC quota of 10.5 million barrels per day in that period.

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