Oil Is Plunging

London-traded Brent crude futures were down nearly than 2% Monday morning, breaking below $102 for the first time in more than a year.

Brent has now declined more than 3% in August and 11% since a June surge to just under $115.

We've recently written about the issues that have put crude futures into bearish territory: flagging demand from Europe, surprisingly abundant supply from the Middle East and booming production out of America.

In a note this morning, Morgan Stanley's Adam Longson said prices are likely to be around these levels for the next few months.

"While we don't view this dynamic as structural, until dislocations are resolved, we see modest downside risk, particularly approaching expiry. By 4Q14, we expect to see a more balanced global crude market."

New York-traded West Texas Intermediate futures were also down more than 1%.