Article 10BE0 Oil price forecast to fall to $20 a barrel, predicts Morgan Stanley

Oil price forecast to fall to $20 a barrel, predicts Morgan Stanley

by
Larry Elliott
from on (#10BE0)

Leading Wall Street bank says price will keep falling if China's currency continues its plunge against US dollar

The price of crude oil could tumble to $20 a barrel in the coming months if China's currency continues to decline against the US dollar, one of Wall Street's leading investment banks has predicted.

On a day when the cost of crude hit a new 12-year low and edge closer to the $30 a barrel level, Morgan Stanley posted a forecast on Monday of $20-25 a barrel for oil based on movements in currencies.

Related: China shares fall another 5%, Europe slips back as oil tumbles - as it happened

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