"Driving our outlook for prices of crude oil are fundamental factors involving the economics of supply and demand and geopolitical positions as well...Crude at $85/b is needed for the industry to get a capital return of 12%."
US investment bank Morgan Stanley has set its 2008 outlook for WTI crude at $80/barrel, up from its previous forecast of $65/b, Morgan Stanley analyst Ho Junqiang told an oil conference in Wuhan, China. The bank's price outlook over the next five years is also expected to rise by about 12.5% to $90/barrel.

"Obviously the market is very nervous ahead of the announcement of the payrolls data. There is no incentive to take major risks until the data is released...Traders are probably biting their fingernails while waiting for the jobs report."
The euro hit a record high against the dollar in Asian trade Friday as the market braced for pivotal US jobs data, said Thomas Lam, treasury economist at United Overseas Bank. The euro hit a record high of $1.5405 in Tokyo afternoon trade, breaking through the symbolic $1.54 barrier for the first time.

Updated: March 7, 2008