Crude Oil Prices a `Bubble,' May Fall, Morgan Stanley Says
By Jordan Burke
Oct. 19 (Bloomberg) -- Crude oil may fall after hitting a record of more than
$90 a barrel, according to a report by analysts at Morgan Stanley.
``Crude oil prices have overshot their fundamentals and are likely to come
down sharply,'' said Eric Chaney and Richard Berner in a report today.
The firm raised its target for Brent crude oil to $70 a barrel from $59 a
barrel for 2008.
``Further increases toward $100 are still possible, as the combination of
lower-than-expected inventories, OPEC discipline, and renewed geopolitical
tensions, robust Asian demand and a weak U.S. dollar have worked nicely for oil
bulls,'' the analysts said in the report.
Crude oil for November delivery rose to a record $90.07 today before falling
$1.53, or 1.7 percent, to $87.94 a barrel.
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