Morgan Stanley: This Oil Rally Won’t Last

Oil prices have likely risen too fast too soon with the market focusing on supply cuts, while global oil demand may not return to pre-COVID-19 levels before the end of 2021, according to Morgan Stanley. The oil price rally in recent weeks “appears mostly supply- rather than demand-driven, and it is questionable how strong refinery runs can increase against this backdrop,” the investment bank said in a note on Monday, as carried by Reuters. While the market is heading for deficit in the second half of the year, there are a lot of inventories…