This was not a game-changing move that will send prices shooting back up towards the $100 a barrel level.
There is a strong possibility that oil will touch the $75 per barrel level before stabilising," he said.
Oil prices were also in reverse, with WTI falling back through the $100 a barrel level, at $99.44 and Brent crude down 70 cents at $113.84.
He predicted that the price of oil would return to the $110 a barrel level by the end of the year.
On a day when the cost of crude hit a new 12-year low and edge closer to the $30 a barrel level, Morgan Stanley posted a forecast on Monday of $20-25 20-25rel for oil based on movements in currencies.
What neither candidate is saying explicitly is that the best policy in the long run, according to some analysts, may be to promote prices that are substantially below the nearly $38 a barrel level that crude oil hit briefly last week before declining to around $30 today, but well above the $12 level that made gasoline so cheap two years ago.
A number of political leaders have openly stated that the two firms, which guarantee about half of the nation's outstanding home loans, cannot be allowed to fail.Oil prices, which had dipped below the $140 per barrel level earlier this week, hit new highs above $147 this morning.
Crude is back toward the $70 a barrel level, down from the mid-$70's earlier this week.
Meanwhile, oil rallied as crude oil gained nearly $4 to rise above the $47 a barrel level.
Even worse, oil is hanging precariously close to the $100 per barrel level, and the dollar continues to get pounded.
With both Brent and WTI trading around historic 12-year lows and lurking either side of $30 per barrel level these percentages are relatively meaningless.
