8 Dec 2014
Brent Crude trades near five-year lows, Morgan Stanley cuts price forecasts
FXStreet (Mumbai) - Crude prices in Asia trade near five-year lows, weighed by bearish forecasts from the investment bank Morgan Stanley and a strong US dollar.
Brent Crude for January delivery traded 1.32% lower at USD 68.16/barrel at the time of writing. The prices slipped after Chinese imports fell 6.7%. However, prices recovered after the details revealed Chinese crude imports rose 9% in November from October to 6.18 million barrels per day.
Meanwhile, Morgan Stanley slashed its 2015 base-forecast for Brent to USD 70/barrel from USD 98/barrel. The investment banker now sees Brent Crude at USD 88/barrel from the previous forecast of USD 102/barrel. "Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley said in a report dated Dec. 5.
Brent Crude Technical Levels
Brent has an immediate support located at 67.87 (Feb 2010 low), under which losses could be extended to 67.02 (Aug 2005 close). Meanwhile, resistance is seen at 70.50 (June 2010 low) and 73.02 levels.
Brent Crude for January delivery traded 1.32% lower at USD 68.16/barrel at the time of writing. The prices slipped after Chinese imports fell 6.7%. However, prices recovered after the details revealed Chinese crude imports rose 9% in November from October to 6.18 million barrels per day.
Meanwhile, Morgan Stanley slashed its 2015 base-forecast for Brent to USD 70/barrel from USD 98/barrel. The investment banker now sees Brent Crude at USD 88/barrel from the previous forecast of USD 102/barrel. "Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley said in a report dated Dec. 5.
Brent Crude Technical Levels
Brent has an immediate support located at 67.87 (Feb 2010 low), under which losses could be extended to 67.02 (Aug 2005 close). Meanwhile, resistance is seen at 70.50 (June 2010 low) and 73.02 levels.