The asset manager PIMCO forecasts Brent oil will rise to $60 a barrel in 2016.
Its logic is that a combination of weaker supply and resilient demand will eventually sustain an uptick in the price next year. Brent - the international benchmark - is currently trading at about $47.88 a barrel.
Greg Sharenow, a former energy trader at Hess and Goldman Sachs who is now a fund manager at Pimco, said:
This combination of strong demand and slowing supply has reduced the likelihood of the doomsday scenario where stocks breach storage capacity and prices need to fall significantly to cause producers to shut down producing wells.A lynchpin to accelerating price inflation will be an oil price that stabilizes, never mind a climbing oil price. Prpeare for accelerating price inflation.