(Bloomberg) -- Add Morgan Stanley to the list of banks expecting crude to reach $100 a barrel later this year.
The bank expects stockpiles to slide even lower by the end of the year, after falling substantially in 2021, according to a research note to clients. Spare supply capacity will shrink to 2 million barrels a day from the current 3.4 million. Investment to boost supply capacity in the oil industry is expected to shrivel 30% by the end of this decade as green initiatives progress.
The bank revised its estimate for when demand erosion from $90 a barrel to $100 due to resilient oil products markets, the analysts, including Martijn Rats said in the note.
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