Citi expects Brent crude to sustain $60 per barrel level

Oil prices gained some ground on Wednesday as global equity markets showed signs of stabilizing, but crude was still under pressure from worries about oversupply and a slowing global economy.

CNBC-TV18 spoke with Edward Morse, global head of commodities at Citi Research, to get his views on the oil market.

"There are several factors at work which resulted in crude prices falling overnight," said Morse.

“The shale production growth is the most important of all the supply factors that are impacting markets today. Nobody had expected that US production was going to grow as rapidly as it has as result of the high prices that we have seen in the third quarter. US production is continuing to rise at over 2 million barrel a day,” he added.

Morse believes that the current prices of Brent are not sustainable. “We are in an environment in which I think USD 60 per barrel Brent is the normal price. It is a price that allows production to continue to grow.”