Oil Price Sinks to US$68

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  • TEMPO.CO, Beijing - Brent crude for January 2015 delivery fell to US$67.73 per barrel, which is a five-year low, after Morgan Stanley cut its Brent forecast yesterday. 

    Morgan Stanley cut its forecast for nest year's world oil prices by US$28 to US$70 per barrel. It also cut the 2016 projection by US$14 to US$ 88 per barrel. In a worst-case scenario, the US investment bank said oil prices could fall as low as US$43 per barrel in the second quarter of next year.

    "Without OPEC's (Organization of the Petroleum Exporting Countries) intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley analyst Adam Longson told Reuters yesterday.

    In the result of OPEC meeting last month, the biggest oil exporter, Saudi Arabia, called on countries other OPEC members do not cut their crude oil production. The decision was made worse off world oil prices, or plunged 40 percent compared to last June.

    At an OPEC meeting last month, the world's biggest oil exporter Saudi Arabia called on other OPEC members not to cut their crude output. The decision pushed prices further down to more than 40 percent since June.

    Saudi had also lowered its prices for US and Asian markets a move that analysts said to be the oil giant's strategy to maintain its market share against competitors.