Morgan Stanley slashes Brent price forecasts

Cuts average 2015 Brent base case outlook by $28 to $70 per barrel

Morgan Stanley on Friday slashed its Brent price forecasts, citing oversupply and inaction by the Organization of the Petroleum Exporting Countries in curbing production.

The investment bank cut its average 2015 Brent base case outlook by $28 to $70 per barrel and for 2016, by $14 to $88 a barrel.

The bank expected over-supply to peak in the second half of next year.

"Unlike 2009, this is a self-inflicted 'crisis', and the coming oversupply is grossly exaggerated. With only a modest fix required, the market is complacent about potential upside risk, particularly in light of lower prices," analyst Adam Longson said in a note.

US crude oil closed on Friday at its lowest since July 2009, as Brent averaged below $70 a barrel in the week for the first time since 2010, as strong US employment data did little to lift the oil market's bearish mood.