In an interview to CNBC-TV18, Reza Amanat of Argus Media shared his reading and outlook on crude prices.
When you see a decline across the commodities spectrum, you have to at the strength of the dollar and that has more to do with the current decline across the board on commodities than any fundamental factor, said Amanat, adding that there is probably a little bit of over exuberance in the last 10 days in terms of how the crude market reacted to fundamental news.
There is a lot of uncertainty about the US policy towards Iran sanctions in terms of whether buyers will be exempted or not, so long as this ambiguity stays in the market, you will get the volatility, he said.
"It is difficult to say exactly where the prices are going to go," he added. "There is a lot of fundamentally supportive news out there."
At the moment crude prices look quite comfortable above $80 per barrel which hasn't been the case for the past year and a half.
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