Oil to $95 a Barrel Can Help Big Oil Stocks (NYSE:XOM),(NYSE:CVX),(NYSE:COP)

With the current price around $75 per barrel, a jump to $95 per barrel could really boost the bottom line for the big oil stocks such as Exxon Mobil (NYSE:XOM), Chevron Corp. (NYSE:CVX), and ConocoPillips (NYSE:COP). 

Near the end of the trading day, Exxon (XOM) is trading pretty flat today with last shares checking in at $65.89 (-$0.21/-0.32%) with close to 25M shares trading hands.  Chevron (CVX) is also down last check at $74.52 (-$0.07/-0.09%) as 7.8M shares went across the trading floor.    Conoco (COP) leads with the day with $50.83 (+$0.23/+0.45%) and 7.3M shares traded at last glance.

(Ann Koh - Bloomberg) - Crude oil traded in New York will rise by the end of this year to $95 a barrel as demand recovers, Morgan Stanley forecast.

Declining crude inventories and the improving global economy will boost prices from current levels of around $75 a barrel, said Hussein Allidina, a commodities analyst at Morgan Stanley, the second-biggest U.S. securities firm after Goldman Sachs Group Inc. Crude oil in 2011 will average $100 a barrel, he said in a note today.

“We expect that fundamentals will continue to improve,” said Allidina. “Our increased 2011 price forecast reflects an improved GDP outlook that will require a higher price to ration demand to meet inadequate supply.”

Crude prices in New York have more than doubled after reduced demand during the global recession pushed it to a low of $33.98 a barrel on Feb. 12. Prices have fallen 6.1 percent this year as investors fretted China will increase interest rates to slow growth in the world’s second-largest energy user.

Global oil demand is forecast to grow 1.7 million barrels a day and global gross domestic product by 4 percent, according to Morgan Stanley. Global spare capacity, pegged at 6.5 million barrels a day for the fourth quarter of 2009, will fall to 5.7 million by the end of 2010.

Morgan Stanley maintained its long position on U.S. benchmark West Texas Intermediate crude for delivery in December 2011.

Source:  http://www.bloomberg.com/apps/news?pid=20601207&sid=aPdXJOj5qb00