“Oil demand isn’t firing up, and the year-end forecasts continue to dive lower”, says Gaurav Sharma, Oil Analyst & Editor at IB Times UK, as he speaks on the oil market fundamentals, and a few oil stocks to Zak Mir, Analyst at Zak’s Traders Cafe on the Tip TV Finance Show.
Highlights:
“lowering year-end oil production to $45/bbl”
“Very little OPEC can do under current circumstances, while there could be an extraordinary meeting - its merits, outcome & impact on market remains questionable”
“Russians, Saudis pumping like there's no tomorrow, as are the Iraqis and whatever the Iranians can from infrastructural standpoint”
“Oil demand just not firing up, we (again) had poor Chinese data today - probably will be half of 1.3m bpd predicted by IEA”
“Among UK equities, I maintain BP (LON:BP) as a buy, and Shell (LON:RDSa) as hold. Have more faith in BP's ability to turn things around, it appears better prepared to cope with an era of low oil prices.” - Gaurav Sharma
“Second tier oil companies - Tullow Oil (LON:TLW) is of great interest from an M&A standpoint - BP could be one of the suitors.”