Morgan Stanley hikes 2010 oil forecast by $20 to $85

SINGAPORE: Morgan Stanley on Tuesday revised up its 2010 US crude oil price forecast to $85 a barrel and to $95 the following year on expectations of an improving economic outlook, supply concerns and a weaker US dollar.

The investment bank said in a research report citing new forecasts from commodity research head Hussein Allidina that it was revising up its forecasts from earlier projections of $65 for 2010 and $85 for 2011 because there was growing investor interest in commodities as an asset class.

The report, focused on the Australian oil and gas sector, gave no further details on Allidina's report.