Crude supplies likely to grow now: Jason Feer

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Jason Feer , Vice President and Singapore Bureau Chief, Argus Media said that the biggest cue in market is the hurricane passing through oil paths in the Gulf of Mexico.

"There were early reports that there hasn't been a lot of damage, which is a bit surprising because it moved through the middle of some of the major production projects. So, they seemed to weather the storm really well. That means about 1.25 million-1.5 million barrels of crude and about the same amount of refining capacities is going to come back on line quickly in the US. It indicates that US refineries will be out in the market looking for crude supplies in a big way and that continues to the softness in US markets."

 

Feer feels that this is the key factor and some of the geopolitical factors really don't argue in favour that the situation in Georgia is still fairly complicated.

 

"Oil companies are starting to return to a rock and that is reassuring the markets that rocky supplies are likely to grow from about 2.5 million barrels and will continue."