Mark Keenan, Head of Commodity Research Asia Pacific at Societe Generale, discusses the crude oil prices
Brent crude oil won't tumble below USD 30 a barrel
In a recent interview conducted by Latha Venkatesh and Manisha Gupta on CNBC-TV18 and published on Money Control website, Mark Keenan, Head of Commodity Research Asia Pacific at Societe Generale, discusses crude oil price as well as output expectations from the oil produces.
Manisha Gupta: The US output continues to be on the higher side. Iran wants to continue to boost output until they reach the pre sanction levels and of course Saudi Arabia, Russia which are not going to cut output if all the other producers continue to pump output on the higher side. What is your sense on how much of demand supply mismatch are we headed for, for this quarter as well?
Mark Keenan: Our view is that the market remains fairly well supplied certainly for the first half of this year but what is quite interesting is that if we look at the US fundamental picture specifically the supply of shale oil; we are starting to see quite meaningful signs certainly since December; supply decreases in a lot of these key shale producing regions and that sets very much in the second half of this year for a much more balanced supply demand outlook and a more stable base in prices forming which sets up ultimately for higher prices for 2017 and 2018.
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