Morgan Stanley: Brent crude oil will exceed 150 U.S. dollars – of the city – Financial Highlights – Sina Sina
Posted on May-31-2008· by china investor
⊙ our reporter Zhou Liang Zhu
Morgan Stanley report issued on the 28th that the soaring global oil prices could lead to slower economic growth and inflation, but not go so far as trigger recession or even stagflation. The report also estimated that Brent crude oil futures prices could easily break through 150 U.S. dollars.
In Burnaby (Richard Berner), led by Morgan Stanley economist team believes that strong demand and tight supply of oil is the status quo. Despite high oil prices may curb some developed economies, the demand, but supply-side bottlenecks could easily be pushing up the price of Brent crude oil rose to 150 U.S. dollars per barrel. Closed on the 28th, London, July Brent crude futures at 130.93 U.S. dollars, and is considered the industry benchmark New York crude oil futures rose 2.18 U.S. dollars, to return to the top 130 U.S. dollars, at 131.03 U.S. dollars.
Morgan Stanley said the report, high oil prices could lead to slower economic growth, but will not bring about a global recession, there are three main reasons: First, higher oil prices is the effect of income transfer, rather than bringing the total decline in revenue. Wealth from rising oil prices will be transferred to the consumer of crude oil-producing countries, oil producers are the majority of the oil dollars will be spent; Second, many countries implemented the policy of subsidies to effectively mitigate the impact of high oil prices; third, Central Bank seems to be strong and do not intend to take the austerity policy, at least so far the situation is so.
However, the report also pointed out that it is certain that high oil prices are likely to bring greater consumer of oil shocks, particularly in the United States, loan-to-especially in the context of the crisis. The report said, rising oil prices will push the already high global inflation to reach 20 percent.
On the 29th electronic trading, oil prices continued trading above 130 U.S. dollars. — As at 17:45 on the 29th, New York, July crude oil contract was 130.21 U.S. dollars.
chinainvestor:本版contents of the article was supplied by MarketWatch, does not constitute investment advice. Investors this operation, own risk.
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