Oil prices may decline to $20/barrel: Morgan Stanley

According to media reports, Morgan Stanley reported that oil prices may decline to as low as $20/barrel, citing a stronger US dollar as the main reason behind their weak expectations.

The bank reportedly stated that a globally oversupplied market may have pushed oil prices below $60/barrel, but the further declines which have brought oil prices to below $35/barrel mostly stem from a stronger dollar.

In December, Goldman Sachs also renewed its prediction that oil prices may fall to as low as $20/barrel, which the investment bank earlier stated in September, attributing its prediction to oversupplied oil markets stemming from the Organization of Petroleum Exporting Countries’(OPEC’s) decision not to cut production.