Brent crude touching USD 64/bbl even USD 65/bbl is a matter of concern for oil importing country. In an interview to CNBC-TV18, Daniel Hynes, Senior Commodity Strategist at ANZ Research shared his sense of the price trajectory.
Brent crude touching USD 64/bbl even USD 65/bbl is a matter of concern for oil importing countries. In an interview to CNBC-TV18, Daniel Hynes, Senior Commodity Strategist at ANZ Research shared his sense of the price trajectory.
The rally over the past month or two has been quite strong and that opens up for some selling as far as investors look to take some profit, said Hynes.
According to him, the price has taken a structural step-up. He further said that the geopolitical risks have risen quite significantly over the past month and that is now being baked into price.
Talking about Saudi Arabia, he said there are some longer term issues wrapped in anti-corruption probes in Saudi. He further said that the country has looked to aggressively diversify its economy and it certainly stacked its claim on keeping the oil market relatively tight and prices high to mitigate diversification.
We think the probability of an extension of the production cut agreement is quite high and even would raise a probability of that being extended even more than the market expect.
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