Commodity bull cycle seen rising from ashes and oil bottoming

London

EUROPE's largest publicly traded asset manager is calling the bottom for oil and sees a rebound in prices as one of the spurs that may start a new bull cycle in commodities.

Schroders plc says the oil price could rally almost two-thirds to as high as US$50 a barrel in a few months as a slump to a 12-year low means producers will have to cut output. That should encourage a wave of retail investors to return to raw materials, according to Geoff Blanning, head of commodities at Schroders, where he helps oversee about US$2 billion.