Dr Ali Bakhtiari, an oil analyst from Iran, believes oil may not cool down, though it may go a bit lower from the present level in the short-term.
"Worldwide oil production is stagnating and there is not much hope that it will pick up," he says. Supply problems from various parts of the world are getting aggravated, and therefore, one is moving towards higher oil prices, he says.
Excerpts from CNBC-TV18's exclusive interview with Dr Ali Bakhtiari:
There is a general feeling that crude might now cool down closer to $60; would you agree with that?
No, I don't agree that it would cool off. In the short-term, it might go a bit lower than the present level, but I would think that $80 is much more likely than $60 before the end of the year.
Why do you say that?
At present, worldwide oil production is stagnating and there is not much hope that it will pick up. The problems with different parts of the industry are being more aggravated as we go along, you have the problems in Nigeria, in Iraq, in Alaska and you might have some disruptions in the near future too. So I don't think that we are going towards lower prices; instead, we are moving towards higher prices.
To what levels do you see it slipping, because of the current sentiments on crude? At what levels do you think you would start buying into it, hoping to see much more of an upside?
Right now, I don't see energy stocks going lower in the near future.
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