The Worst is Over for the Global Oil Industry, Say Experts

Those at the helm of affairs in the global oil industry say that the worst is likely behind for the oil sector after a glut that sent prices spiraling downward. Some analysts are predicting that the commodity could sell at US$50 a barrel by 2017. In a report published in Bloomberg, the CEO of the Gunvor Group Ltd, Torbjorn Tornqvist, said that the down market was behind the industry. He termed it as the “beginning of the end” for the woes of the oil industry. The recent low that oil prices hit is the lowest in the past 12 years.

However, as the output from the U.S. shows a gradual decline, the oil glut could soon be a thing of the past. It is now expected that measures such as an output freeze might not be necessary after all. A meeting to take a call on whether or not to freeze oil output has been scheduled in Doha, Qatar, on April 17. This meeting is expected to be attended by OPEC members and other major oil producers worldwide.

A surge in volatility proffered benefits to oil producers worldwide; the trend should continue, opined Tornqvist. The Bloomberg report also quoted the CEO of Trafigura Group, Jeremy Weir, as saying that the ‘rebalancing’ of supply of crude oil across the world will likely occur toward the end of the current year. This will happen as oil producers who are facing a cash crunch eventually bring down production, in turn aiding the stabilization of current oil prices.

Unless a highly disruptive political event occurs or a catastrophe hits the market, there is every reason to believe that the oil industry will see better days ahead. 


Post a Comment

Note: only a member of this blog may post a comment.

Latest Post

Market Research Reports