After last week's steep sell-off, oil prices suggest traders are pricing in a demand slowdown that is similar to a mild recession, according to a Morgan Stanley analysis.
Crude oil futures have declined precipitously in September, with Brent and U.S. crude oil on Friday posting their worst weeks since October 2023.
Morgan Stanley is forecasting a surplus of about 1 million barrels per day in 2025.
Demand Morgan Stanley looked for similar patterns in the past 35 years of Brent oil price data.
Over the past five U.S. recessions, these stockpiles built by 150 million to 220 million barrels.
Persons:
Morgan Stanley, Morgan, Martijn, Brent
Organizations:
Brent
Locations:
U.S, Brent, OPEC, Canada, Brazil, Guyana