Morgan Stanley (NYSE:MS) Oil Price Estimates
Morgan Stanley (NYSE:MS) analyst Hussein Allidina recently said he believes oil will reach $95 a barrel by the end of 2010, while surging to $100 a barrel sometime in 2011.
“We expect that fundamentals will continue to improve,” said Allidina. “Our increased 2011 price reflects an improved GDP outlook that will require a higher price to ration demand to meet inadequate supply.”
Morgan Stanley added they believe oil demand worldwide will increase to 1.7 barrels a day.
What is being considered the impetus behind this is the recent strengthening of the U.S. dollar and the assertion by China that it is tightening things up over there.
The idea that a recovery will drive those prices up is somewhat laughable, as there is almost nothing to point in that direction, even though it is the mantra of mainstream media; at least in relationship to the United States.
As far as the U.S. dollar having any sustainable rally, that's a ridiculous thought as well, undermining the Morgan Stanley assertions.
Morgan Stanley (NYSE:MS) Oil Price Estimates
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