At $50/B, Oil Risks 'Reverse Goldilocks' Syndrome
The bank's team notes that demand reacts to oil price changes on average over 12 to 24 months, while supply outside OPEC and North America responds to price changes over a two- to six-year time frame.
"Global oil supply elasticities kick in over a multi-year window ... suggesting higher prices may be needed to slow down demand in 2017," Bank of America-Merrill Lynch's analysts wrote.
(Reporting by Amanda Cooper; Editing by Dale Hudson)
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