This Week’s Market Buzz

•    Investment bank Morgan Stanley expects Brent crude prices to rise to $40 per barrel during the last quarter of the year, citing improving demand as the main driver for higher oil prices. In a note to its clients, the bank states that it expects a strong rebound in demand, and even sees a supply deficit on the horizon if current OPEC+ output cuts are kept in place. “We expect demand to rebound to about 97 million bpd by the fourth quarter as economies come out of lockdown – a significant improvement although still down about 4 million bpd year-on-year,” the release stated.

•    With production and employment falling rapidly, North Dakota’s oil industry is enduring historically bleak times, according to the Star Tribune. The number of drilling rigs in North Dakota – a harbinger for future oil production – is at a low not seen in the fracking era, said Lynn Helms, director of the state’s Mineral Resources Department. The rig count, which was in the 50s during the first three months of this year, fell to 35 in April and sits at 12 today – “a massive decline,” Helms said. It’s expected to drop below 10, he added.

•    Victory Nickel Inc. announced the resignation of Paul W. Fisher as a director of the company, effective immediately. The board of directors thanked Fisher for his service to Victory Nickel and wished him well in the future.

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