homemarket NewsExpect bigger rebound in shale than what has been factored in so far: Vanda Insights' Vandana Hari
Expect bigger rebound in shale than what has been factored in so far: Vanda Insights' Vandana Hari
Vandana Hari of Vanda Insights believes fundamentally oil remains very well supportive in terms of supply/demand balances.
Vandana Hari of Vanda Insights believes fundamentally oil remains very well supportive in terms of supply/demand balances.
“There is definitely a bit of froth, a bit of speculative premium that has crept into oil. How and when that dissipates is anybody’s guess but longer-term the supply/demand fundamentals are very sound,” she said.
“The market is looking far forward, it is looking at Q2 and Q3 and the spate of vaccinations, COVID-19 cases declining globally and on the supply side, there has been a major bullish shock – second one in two months from Organization of the Petroleum Exporting Countries (OPEC) and Saudi Arabia. I have a feeling that is going to remain well supported on the supply side as well.”
“We are already at USD 70 per barrel but in terms of averaging for the rest of this year’s Q3 and Q4, I would say keep an eye on what the US shale response is. I do feel that OPEC definitely and a lot in the market are underestimating shale’s response. USD 65 per barrel West Texas Intermediate (WTI) sustainably higher than that, I would expect a far bigger rebound in shale than what has been factored in so far,” she said.
For more, watch the video…
(Edited by : Bivekananda Biswas)
First Published: Mar 8, 2021 3:29 PM IST
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