After jumping the most in nine months, oil is expected to climbfurther after OPEC beat the odds to agree on an output cut. Justdon't expect the rally to last.
Morgan Stanley sees more U.S. shale drilling and increasedinvestment from Asia to the North Sea limiting oil's upside,setting the market up for disappointment in late 2017. GoldmanSachs Group Inc. forecasts prices will retreat back to $50 a barrelin the second half of next year after possibly rallying higher than$60. Japan's Mitsui & Co., which owns U.S. shale assets, seesoil slumping to the $40-range it's been stuck in most of the lastsix months.
“Oil could go up to $60, but then the shale drillers come outand the price will likely come back down,” Keigo Matsubara, CFO ofthe Japanese trading house, said in an interview Thursday. “Oilcan't continue over $50.”
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