Earlier in the day, the Danish Saxo Bank published a report "Outrageous Predictions 2016," which describes underappreciated events that could significantly affect global markets.
"The unease among weaker as well as wealthier members of the [OPEC] cartel over the supply-and-rule strategy continues to grow as the economic pain spreads across the 12-member group… Suitably buoyed, OPEC catches the market on the hop with a downward adjustment in output. That move breaks the downward price spiral and price mounts a quick recovery with investors scrambling to re-enter the market to the long side… At its peak, the price once again brings $100/barrel prices onto the horizon," the forecast said.
The report predicts the strengthening of the Russian currency, which strongly relies on oil prices, by some 20 percent against the dollar/euro basket due to the predicted increase in global oil demand.
Oversupply of oil products and low demand have more than halved the price of oil compared to summer 2014 levels, when the price of Brent crude stood at about $115 per barrel. Current oil prices are hovering around $40 per barrel.
