There is just too much oil out there – IB Times

“There is just too much oil out there and the demand side is likely to struggle”, says Gaurav Sharma, Editor at IB Times while detailing the reasons for the bearish outlook on oil. He is joined by Tip TV’s Zak Mir and Mike Ingram, strategist at BGC Partners.

Sharma makes an interesting observation that a Saud-Russia freezing their output at current levels – record highs – is not going to solve the problem. The other key point to note is that China demand has been stagnant and much of the existing Chinese demand represents SPR (Strategic Petroleum Reserve) build up.

This segment is an eye opener for anyone out there who believes the major producers would freeze production and the oil market rebalancing is under progress.