Oil market will return to normal only by discovering a COVID-19 vaccine; Expert
“Lower oil prices helped the East Asian countries to seize the opportunity and replenish their oil reserves,” a chief analyst at the data company Kpler told ILNA.
In an exclusive interview with ILNA news agency, the research analyst at the consulting firm Homayoun Falakshahi said that on the other hand, countries such as Norway, Brazil, and Guyana have abused the OPEC agreement and increase their oil productions.
“Oil prices fell sharply due to the imbalance in the market at the beginning of the Iranian year but since then, the oil market outlook has improved and current prices seem more reasonable.”
According to Homayoun Falakshahi, a senior analyst at “Kpler”, “Ending the world's largest mass quarantine in the countries such as the United States, Europe, and India, is one of the factors for improving the oil market; Adding that the OPEC deal to cut oil production by 10 million barrels per day is another reason.
Kpler is the leading provider of data-driven transparency solutions in commodity markets.
The former senior analyst at Wood Mackenzie also confirmed “OPEC plus countries had no choice but to cut production sharply. US sanctions against Iran and Venezuela have had some effect, and Oil production in the two countries cannot be expected to decline further.”
“Only by discovering a vaccine for Covid-19 and the end of the coronavirus outbreak, the market will get back to normal,” he underlined.
In another interview, the senior analyst at Kepler, said leisure trips could recover in the next couple of years, but business travel may take longer. Adding that technology improvement is a key reason why we don't think business travel will resume sharply any time soon.
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