Oil may be wobbling around the $40 a barrel mark, but one strategist has told CNBC that crude is only heading higher in the near term but in the years to come, there'll be wild swings.
"We're seeing a bottom right now for the second half of the year," said Francisco Blanch, the head of global commodities and derivatives research at Bank of America Merrill Lynch, the corporate and investing arm of the American bank.
"We think what's happening in the market is very seasonal. Supply is actually going down pretty quickly, demand is moving higher, and this is going to move the market into a deficit."
This will actually be a "multi-quarter deficit", according to Blanch, who believes it will push prices "quite a lot higher" and expects the commodity to hit a peak of $70 a barrel next year.