The Globe and Mail reports in its Tuesday, Oct. 21, edition that Morgan Stanley economist Adam Longson says demand for crude oil remains healthy. The Globe's Shawn McCarthy writes that Mr. Longson says crude prices could stage a modest recovery as global refineries resume production after seasonal maintenance in order to prepare for rising winter demand. Mr. Longson says there is little likelihood of a severe price drop like the one seen during the 2008-09 recession that took oil down to below $40 a barrel. He says it is speculators that are largely responsible for the most recent slump in crude prices. Mr. Longson says: "The large downward move in oil over the past two weeks was mostly speculative, in our view. ... While the market remains oversupplied and lower OPEC production should be required, we see few signs of new deterioration in fundamentals." Global oil prices have been falling since June, when they peaked on geopolitical concerns in Russia, the Middle East and North Africa. That slump turned into a rout in September, as investors turned fundamentally bearish and began loading up on short positions. Mr. Longson says the market is vulnerable to a "short squeeze rally."