Guarav Sharma – Oil analyst of Oilholics Synonymous – joined Tip TV CEO, Nick Batsford, to discuss continued confusion in the oil markets, and if they’re close to finding direction.
Supply side decline could push prices up.
With many of the big oil companies cutting back on operations, Shell (LONDON:RDSa) pulling out of the Arctic being the most recent, Guarav Sharma believes that the oil market is likely to see a decline on the supply side. Sharma doesn’t believe that this decline will see a price move back to $80 a barrel any time soon, but he also sees no reason for oil prices to fall any further. Current sentiment is that oil will continue to fluctuate in this $40-60 range, until the market can muster some direction.