Proper Oil Price Rebound May Come by 1Q-End
A proper oil price rebound may come by the end of the first quarter.
That’s what Vandana Hari, founder of Vanda Insights, outlined in a radio interview with Bloomberg on Tuesday.
“I’m not sure if rebound is what we could call the jump that we saw a bit on Friday and some on Monday. I think a proper rebound … would probably be around March or the end of first quarter, is what I’m expecting,” Hari told Bloomberg in the interview.
“That’s when you should start seeing the real impact of the physical markets of the OPEC non-OPEC cuts and hopefully a move towards an agreement between U.S. and China. I think what we’re seeing right now is just some progress in their talks,” Hari added.
Speculators have swung to a net short position in the crude futures market, Hari told Bloomberg in the interview.
“I would imagine if they really turn optimistic and the view turns significantly constructive in the oil markets there would be a hell of a lot of short covering to happen,” Hari said in the radio interview.
“I don’t think that’s happening here. What has happened probably right now is a bit of a floor to crude prices,” Hari added.
In a television interview with CNBC on Monday, Amrita Sen, co-founder of Energy Aspects, indicated that the oil market is oversold.
“At current levels, based on current fundamentals, the market is oversold but it doesn’t mean that it’s going to correct straight away … it can still take some time,” Sen told CNBC in the interview.
Hari has more than two decades of experience providing intelligence on the global oil and gas markets to executives in the industry and related services, government officials and agencies, as well as wealth managers, according to Vanda Insights’ website.
Vanda Insights was launched in September 2016. The Singapore-based company is a provider of intelligence on the global energy markets.
As well as being the co-founder of independent research consultancy Energy Aspects, Sen is the head of research and chief oil analyst at the company. Sen was formerly the chief oil analyst at Barclays Capital.
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