crude oil

Does not expect dramatic fall

Oil surged over three trading sessions following fall in US production

What the Iran nuclear deal means for oil prices

Asset allocators are refusing to be swayed by a recent rally in commodity prices, saying the bounce is far from sustainable for a sector which remains "on life support".

Managers and analysts have been left struggling to find answers as a number of 2015's crowded trades begin to unwind in increasingly dramatic fashion.

Beneficiaries of the oil price drop

FTSE 350 companies will pay out £86.3bn in dividends this financial year, while oil majors should be able to maintain payouts despite tough trading conditions, according to Markit.

Warren Buffett sold out of two of his energy stocks - including his position in the world's largest energy company ExxonMobil - as the oil price collapse accelerated at the end of last year.

Eagle Asset management's US equities manager Ed Cowart has called on investors to not ditch energy stocks, after the price of Brent crude oil plunged towards a six-year low.

The FTSE 100 has dropped 2.5% this afternoon as worse-than-expected US retail sales data darkened investors' moods further this afternoon.