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In an interview to CNBC-TV18, Abhishek Deshpande, Oil Market Analyst at Natixis shared his reading and outlook on crude oil.
Abhishek Deshpande, oil market expert at Natixis says that a cut will be a positive news from the OPEC. A cut, if it actually comes, could also lead to non-OPEC countries cutting output.
Oil prices have rised to hover around USD 46 per barrel recently and this trend is largely due to factors like informal talks between OPEC and non-OPEC nations, says Abhishek Deshpande, Oil Market Analyst, Natixis. He added that oil prices should stay at USD 46 per barrel in the short term, before rising in 2017.
"The problem is, the recent rally has been caused by investor flows and absolute and unprecedented supply outages in some places," says Abhishek Deshpande, Chief Oil Market Analyst at Natixis, adding, this raises concern that resolution might lead to sell-off in the immediate months.
The development will revive oil industry fears that major producers are embarking again on a battle for market share, especially after Riyadh threatened to raise output steeply if no freeze deal were reached.
