Drawing on his 15 years of experience in proprietary oil trading, including as former Partner at Vitol SA, and to share his take on the International Energy Agency’s (IEA) recent surprise move of releasing 60 million barrels of oil, is Gus Majed, Founder of Beca Advisors.
Q1 - Besides oil prices having fallen and in so doing having virtually wiped out all of this year’s gains, what’s been the impact of IEA’s move - particularly given the amount being released is just 60 million barrels over a 30 day period?
Q2 - "It took Iraq 10 years to reach the pre-Gulf War production levels and even if the Libyan come back in five years ..." How do you arrive at "five" years?
Q3 - How long do you expect prices to stay at their current levels - given that the last time the IEA released oil in 2005 prices did fall but rose to their original levels within months?
How do you see prices evolving - under what circumstances/scenarios, in what range, when and why?