Following the release of Natixis’ “oil price scenario” report, Abhishek Deshpande, Natixis’ lead oil analyst, speaks to Wall Street Journal and CBNC on the report’s findings – and how Iran’s historic agreement with the US has once again put oil prices under pressure.
Deshpande predicts that despite OPEC members concerns around the possibility that Iran may begin to export more crude oil, they’re not about to change course. Indeed, countries such as Saudi have recognised the need to gain market share, and by keeping prices low for such a long time they have knocked some competitors out of the market. Ultimately, it “wouldn’t serve their policy” to start trimming production, says Deshpande.
In regards to oil prices, Deshpande predicts that at a time when oil markets are oversupplied and OPEC is on the path of getting market share, oil markets will be unbalanced and we will see pressure on oil prices not just in six to 10 months, but in the near-to-medium-term as well, with “some serious concerns” about global storage capacity by the first quarter of 2016.