Oil Market Still Flush With Inventory, Says FGE's Fesharaki

The transcript discusses the potential impact of US sanctions on Venezuela and how it complicates OPEC's mandate. It highlights the challenges of finding markets for heavy Venezuelan oil and the current state of US shale production. The discussion also covers oil price trends, the impact of OPEC and non-OPEC agreements to cut production, and predictions for future oil prices. The market is expected to rebalance within three to six months, depending on compliance with production cuts.

What is the main challenge for Venezuelan oil if US sanctions are imposed?

• Increasing production levels

• Reducing production costs

• Finding markets due to its heavy quality

• Improving oil quality

How do US shale producers typically manage their production levels?

• They reduce production during low demand periods

• They increase production only when prices are high

• They produce at maximum capacity to maximize income

• They adjust production based on market demand

What is the expected impact of OPEC cutbacks on the oil market?

• No impact on market balance

• Gradual balance over several months

• Increase in oil inventories

• Immediate balance in supply and demand

What price range is expected for WTI if OPEC and non-OPEC countries comply with production cuts?

• $45 to $50

• $65 to $70

• $55 to $60

• $75 to $80

By when is the oil market expected to reach balance if OPEC compliance is partial?

• In three to six months

• In six to nine months

• Within one month

• By the end of the year