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Morgan Stanley has adjusted its oil outlook from $95 per barrel to $82.50 as the new variant of covid-19, Omicron, as well as surging cases in parts of Europe, dashes the recovery of the oil and gas sector.

This is coming as the Organisation of Oil Producing Countries (OPEC) heads to a meeting this week with an expectation of adding about 400, 000 barrels per day of crude to the market.
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Oil prices crashed last week to about $69 per barrel after a speedy rise to almost $90. At the time this report was compiled, Brent was trading for $74.67, it was $83 on Tuesday last week and $85 about a month ago.

Nigeria’s sweet crude was the worst hit, standing at $72 after rising to about $85 earlier in the month, although the price is still on track with projections in the 2022 budget.
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While Nigeria’s crude oil production had dipped to 1.2 million bpd before slightly rebalancing, experts noted that the OPEC+ meeting this week may not see the monthly addition of 400, 000 bpd due to capacity challenges.

Morgan Stanley stated that the OPEC+ meeting this week might pause the monthly 400,000-bpd increase in production, stressing that the alliance has neither the capacity to do so, nor a reason to exacerbate an oversupply.
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