The year 2016 may prove a time in which the theoretical underpinnings of the old adage that “the best cure for low prices is low prices” is challenged, according to Morgan Stanley. Amid firming demand and plateauing production from nations outside the Organization of Petroleum Exporting Countries, the oil market has made strides toward rebalancing in the second half of 2015 despite hitting fresh 11-year lows : Bloomberg Conventional wisdom holds that low prices spur a pickup in demand and push producers to shutter unprofitable projects. But Morgan Stanley analysts Adam Longson and Elizabeth Volynsky see slower demand growth and risks that supply will rise rather than peter out in 2016. Their view stands in stark contrast to that of such banks as Credit Suisse, whose analysts see improving fundamentals in the crude market driving a more expedient recovery in prices. A “number of headwinds in 2016 could serve […]