LONDON: Brent crude oil fell more than US$2 a barrel yesterday to a new five-year low on predictions that oversupply would keep building until next year after Opec decided not to cut output.
Brent for January was down US$1.77 at US$67.30 a barrel by 1445GMT, having fallen US$2.30 to US$66.77 — its lowest since October 2009.
US crude was down US$1.44 at US$64.40 a barrel, after hitting a session low of US$64.14.
The US contract, also known as West Texas Intermediate, touched US$63.72 last week, its lowest since July 2009.
In a report dated December 5, Morgan Stanley said oil prices could fall as low as US$43 a barrel next year.
The US investment bank cut its average 2015 Brent base-case outlook by US$28 to US$70 per barrel, and by US$14 to US$88 a barrel for 2016.
“Without Opec intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015,” Morgan Stanley analyst Adam Longson said. Reuters