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.
-RW
Everything that I see tells me that price inflation is here and accelerating. Stock prices are higher; housing prices are higher in dozens of key markets; rents are accelerating; oil as suggested in the posted article is likely to rise; almost everything that my wife buys at the grocery store is either priced higher (than 6 months ago) or packaged smaller. Apparently the Fed BOG's is either blind or willingly complicit in this "no inflation" charade. Can you suggest a private inflation index that tells a truer story than the government index?
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