Oil Markets to Rebalance by Mid-2019, Says ED&F's Haque

The video discusses the complexities of predicting oil prices due to geopolitical tensions, market volatility, and economic factors. It highlights the influence of OPEC's decisions, US shale oil production, and the role of emerging markets like China and India. The potential impact of Venezuela's economic collapse on oil production is also examined. The discussion emphasizes the challenges in forecasting oil prices and the factors that could lead to market rebalancing.

What are some factors that make predicting oil prices challenging?

• Predictable shale oil production

• Geopolitical tensions and global demand fluctuations

• OPEC's consistent compliance with cutbacks

• Stable geopolitical conditions

How does the volatility of the oil market affect investment decisions?

• It introduces risks to investment models

• It reduces the need for capital spending

• It makes investments more secure

• It guarantees high returns

What is the approximate cost of production for US shale oil?

• $60-$65 per barrel

• $80-$85 per barrel

• $40-$45 per barrel

• $15-$20 per barrel

How do lower oil prices benefit emerging markets like China and India?

• They lead to economic instability

• They reduce import numbers

• They boost economic growth by lowering import costs

• They increase export costs

What potential risk does Venezuela's economic situation pose to the oil market?

• Collapse of oil production leading to market shock

• Stabilization of oil prices

• Decrease in global demand

• Increased oil production