The 800,000 barrels a day of crude production unaccounted for in the International Energy Agency’s estimates of oil supply and demand for last year are a “poor explanation” for the recent rally in prices, according to Morgan Stanley. The “missing barrels” — which result from the difference between the IEA’s estimate of oil supply and demand — are probably present in stockpiles outside the 34 members of the Organization for Economic Cooperation and Development, Morgan Stanley said in a note Monday. The proportion of global inventories in developing countries such as China, which aren’t directly monitored by the agency, should be growing, the bank said. “Missing barrels are one of many oil-market myths cited by bulls,” Morgan Stanley analysts including Adam Longson said in the note. “The theory is that oil demand is understated because OECD inventories do not capture the full imbalance. However, just because you can’t see […]