Abhishek Deshpande, Natixis’ Senior Oil Analyst, speaks to City AM on the recent price of oil, which has surged over $40 per barrel for the first time this year. Certainly, this shift in sentiment has brought hope that the 20-month price rout is finally coming to an end.
Indeed, crude has climbed by almost 50% from lows of $27 a barrel after sliding US production and discussions between Saudi Arabia and Russia eased fears that the price could fall below $20. Speaking to City AM, Deshpande says “Investors are responding to US production guidance that sounds very different from this time last year, while talks between Opec and Russia have been taken as a good sign,”.
The pressing question is, with a deal yet to be struck, will the oil glut to last into 2017 or potentially 2018?
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