- It's nearly impossible to forecast the direction of one asset, but Morgan Stanley's Adam Longson is going for two, predicting Brent oil could fall to $20 per barrel alongside further gains in the dollar.
- A global glut may have been responsible for the initial crash in crude oil below $60 per barrel, he says, but the drop into the mid-$30s has been about the rising greenback.
- “Oil in the $20s is possible, but not for the reasons often cited,” says Longson. “It’s not about deteriorating fundamentals.”
- WTI crude is down 1.5% this morning to $32.67.
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