OPEC Chief Optimistic That the Worst of Oil Crisis is Over


Up OPEC and its allies are rapidly cutting production and seeing signs that demand for crude is starting to recover OPEC secretary general Mohammad Barkindo told Bloomberg that he's hopeful the west of the old crisis is over but is he right we asked Coliseum standard chartered economist for me not tacky I'm Pakistan eleven of excess supply best oil markets hi speed in an eighth grade was indeed unprecedented we actually estimate that the average around twenty one point three million barrels per day and looking ahead we think that the oil supply drops will likely close by July so we're seeing positive signs that the Marlins would likely grow old and die reply from OPEC's stock would continue to fall especially with the addition and **** announced by Saudi the UAE the UAE and Kuwait are you certainly has accelerated this process but even when the snow on balance restored in July there are still several headwinds that are likely to be fractured week markets would still be faced by the head when the high inventor used hi OPEC's spare capacity and also the need to re incorporate non OPEC output output which has so far been temporary be sufficient so there is a risk that if prices value too far and too fast especially if we see WTI breaks thirteen dollars and a sustained minor this could cause the return of some U. S. wedding after a very short period of second and yet when we look at that car good morning to you when we look at the U. S. side of the scenario JP Morgan thought one and a half million barrels will come off the U. S. side by G. that's not actually taking effect the shop in effect is that and you've got conical continental in several taking seven hundred and fifty thousand files also is not the biggest tail risk is that shale reasserts itself more virulently perhaps in the market positions it's certainly part of the equation and it's certainly a risk especially if we need prices rise quite fast and you already have some reports that current prices are causing the return of some U. S. flags after only a very short period of second generation network considering but also the fact that we are dealing with an overhang and and the battery is under OPEC's spare capacity all of these three factors together might keep prices depressed for the rest of the

Coming up next