Franklin Templeton Investments, which has $740 billion in assets under management, has been making some big bets that the oil rally is far from over. WTI prices, which dipped near $26/bbl in February, have recovered to around $50/bbl in recent weeks. However, Franklin Templeton believes that prices are not yet high enough to balance the oil market.

“Can we get enough supply at $50 a barrel? My guess is not,” Franklin analyst Frederick Fromm said.

“Longer term, we need at least $65 a barrel.”

With global oil demand continuing to rise, the firm believes $50/bbl is not a high enough price for producers to meet global demand.

Franklin Templeton is predicting higher oil prices will benefit U.S. shale producers who were hit hard during the downturn, including Anadarko Petroleum Corporation APC 4.85%,Occidental Petroleum Corporation OXY 3.88% and Apache Corporation APA 5.67%.

The firm has been selling…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!