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market | IST

Market is overreacting to oil prices on concern over Iran sanctions, says Wood Mackenzie

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Wood Mackenzie on Thursday said market is over reacting in terms of oil prices since the impending sanctions against Iran starting from November 4.

Wood Mackenzie on Thursday said market is over reacting in terms of oil prices since the impending sanctions against Iran starting from November 4.
In an interview to CNBC-TV18's Manisha Gupta, Suresh Sivanandam, senior manager, said, "There is going to be ample supply of oil. Although, we are going to see lot of volatility in the market in the fourth quarter. But, probably the dust will settle down once we pass the November 4 mark, when we see, probably, the world will still be running despite lower exports from Iran."
Talking about levels of crude oil, Sivanandam said, "It has to come more from speculators in the market, who could be driving the prices up. But, fundamentally what we are seeing here clearly is an action coming from OPEC (Organization of Petroleum Exporting Countries). Volatility will be still there. In our view, probably like $90 per barrel. Probably, we will see around $80 mark in the next month. But in longer term, we still see more stable crude oil prices."