SocGen Says Buy Oil Now as OPEC Must Cut Output to Stop Bleeding
- Brent crude will climb to $60 by end of 2016 after reductions
- Bank recommends increasing exposure to oil-related assets
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Now’s the time to buy oil as OPEC members suffering swollen fiscal deficits will be prompted to curb output, according to Societe Generale SA, which predicts a price rebound next year.
Brent crude will climb to $60 a barrel at the end of 2016 as production cuts by the Organization of Petroleum Exporting Countries will help balance supply and demand, the bank’s head of global asset allocation Alain Bokobza said on Monday. The bank recommends increasing exposure to oil-related assets with a view that commodity prices are bottoming out.