BoAML - Oil prices to push higher into 2016

The slowdown in China’s economy combined with the U.S. shale production boom (see chart below) have caused oil prices to tumble. In this video Francisco Blanch, Head of Global Commodities and Derivatives Research at Bank of America Merrill Lynch examines the dynamics that will shape commodity prices into 2016. “For 2016 the outlook for oil is going to be very dependent on what emerging markets do”. Assuming EM stability, Blanch believes “ inventories will stabilise in the coming year pushing prices higher”. Watch the video below to see the rationale behind this view.