LAGOS — Brent crude oil fell more than $2 a barrel yesterday to a new five-year low on predictions that oversupply would keep building until next year after Organisation of Petroleum Exporting Countries, OPEC, decided not to cut output.

In a report dated December 5, Morgan Stanley said oil prices could fall as low as $43 a barrel next year. The US investment bank cut its average 2015 Brent base-case outlook by $28 to $70 per barrel and by $14 to $88 a barrel for 2016.

“Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015,” Morgan Stanley analyst Adam Longson said.

Brent for January LCOc1 was down $1.82 at $67.25 a barrel. ET, having fallen $2.30 to $66.77 – its lowest since October 2009. U.S. crude was down $1.24 at $64.60 a barrel, after hitting a session low of $64.14. The U.S. contract, also known as West Texas Intermediate, touched $63.72 last week, its lowest since July 2009.

At a meeting last month, top oil exporter Saudi Arabia resisted calls from poorer members of the Organisation of the Petroleum Exporting Countries to cut production, driving a further slide in prices, which have lost more than 40 percent since June.

Cartel member Kuwait said yesterday that oil prices were likely to remain around $65 a barrel for the next six to seven months.