However, as the output from the U.S. shows a gradual decline, the oil glut could soon be a thing of the past. It is now expected that measures such as an output freeze might not be necessary after all. A meeting to take a call on whether or not to freeze oil output has been scheduled in Doha, Qatar, on April 17. This meeting is expected to be attended by OPEC members and other major oil producers worldwide.
A surge in volatility proffered benefits to oil producers worldwide; the trend should continue, opined Tornqvist. The Bloomberg report also quoted the CEO of Trafigura Group, Jeremy Weir, as saying that the ‘rebalancing’ of supply of crude oil across the world will likely occur toward the end of the current year. This will happen as oil producers who are facing a cash crunch eventually bring down production, in turn aiding the stabilization of current oil prices.
Unless a highly disruptive political event occurs or a catastrophe hits the market, there is every reason to believe that the oil industry will see better days ahead.