Oil prices fall to $40 over the next 6 months? - Nomura

Analysts at Nomura offered a potential scenario for the price of oil.

Key Quotes:

"Oil prices fall to $40 over the next 6 months?"

"This oil price scenario is possible if OPEC fails to extend its production cutbacks, and global growth momentum falters while global oil inventories remain elevated."

"Clearly this scenario paints an even bleaker picture for headline inflation through 2017, and could lead the market to question whether normalisation could be a policy mistake. "