Platinum – oil headed back to $70 per barrel

Clay Smolinski, Portfolio Manager at Platinum Asset Management says the medium term outlook for oil should see the commodity trade back towards $70/barrel over the next 18 months. His rationale that prices will move higher revolves around the supply and demand equation tightening. On the supply side Smolinksi says 2015 saw a decline in production in US shale operators a trend that he expects will continue in 2016. From a demand perspective he sees continued uplift in demand for oil – underpinned largely by Chinese consumption. Watch the video for the full explanation of how Platinum sees the supply & demand situation tightening and why $70/barrel is where they see the price headed.