Oil: Prices could be higher next year – Morgan Stanley

Andrew Sheets, a Chief Cross Asset Strategist at Morgan Stanley, says that the steep decline in oil prices could reverse next year.

Key quotes

“Oil prices could remain very low in the second quarter, but it also means that prices could be higher next year and the years after, as the global economic recovery and the supply cuts of this year once again balance demand.”

“While the price of a barrel of oil in the US is about $20 today, our analysts think it could average about $40/barrel next year, or about twice the current price.”