Robust demand in China, India and the U.S. — as well as the ongoing production cuts from OPEC and its allied producers — could help to rebalance the oil market this year, the chief executive of Italian oil and gas giant Eni told CNBC.
“For the first time, the fundamentals are leading the price scenario … (So) I think it can happen,” Claudio Descalzi, CEO of Eni, said while speaking at Davos on Tuesday.
Brent crude traded at $69.41 a barrel at around 12:40 p.m. London time, up 0.54 percent, while U.S. crude was seen at $63.89, up 0.5 percent.
The price of oil collapsed from near $120 a barrel in June 2014 due to weak demand, a strong dollar and booming U.S. shale production. OPEC’s reluctance to cut output was also seen as a key reason behind the fall. But, the oil cartel soon moved to curb production — along with other oil producing nations — in late 2016.
