The slowdown in global trade growth has had a negative impact on oil prices, with oil prices falling by 20% this year. Daxing also looked at the price of oil, Morgan Stanley’s latest report, this year’s Brent oil target price from 65 yuan per barrel (US dollar ‧ the same) to 60 yuan, and the West Dess medium oil ( WTI) predicted oil prices in the third and fourth quarters, from 58 yuan to 55 yuan.
The bank pointed out in the report that the current slowdown in oil demand growth remains unchanged. Under the slowdown of global economic growth, it is expected that the growth in demand for crude oil will weaken.
The bank will reduce its average daily demand growth forecast from the original 1 million barrels to 800,000 barrels. The average daily demand growth forecast for next year will be reduced from 1.4 million barrels to 1 million barrels.
Morgan Stanley pointed out that if the Organization of Petroleum Exporting Countries (OPEC) wants to ensure the balance of the oil market, there is a need to reduce production next year. It is expected that the average daily output of OPEC will decrease by 1 million barrels next year.