Gaurav Sharma, Oil Analyst and Editor at IB Times UK, believes that chances of any production freeze appear slim, as he joins the Tip TV Finance Show to discuss the outlook ahead for oil prices.
Highlights:
“We've switched from a bear market to a bullish one, but do not trust the oil price rally; its being sold on a false premise which is why profit-takers are all over oil futures since start of the week”
“Chances of oil producers agreeing to a production freeze appear slim, and even if they do - it'll be a phoney action as Russia & Saudi Arabia are pumping over 20m bpd between them”
“Even for a short price uptick, the market would need a real terms cut of 1m bpd - all that'll do is support fringe North American plays and we'll be back where we are”
“In any case, data suggest North American oil explorers have adjusted to the new normal of a $40-50/bbl oil price. That’s the range we're most likely stuck at for 2016”