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Crude can fall below $90/bbl by Dec: Oppenheimer’s Gheit

In an interview to CNBC-TV18, Gheit says crude oil prices cannot be trading much above their replacement cost. They have been inflated for quite some time, because the risk premium due to fear of potential supply disruption has increased.

Oil prices above USD 70/barrel are not sustainable in the long term, says Fadel Gheit, Managing Director & Senior Analyst, Oppenheimer & Co.

In an interview to CNBC-TV18, Gheit says crude oil prices cannot be trading much above their replacement cost. They have been inflated for quite some time, because the risk premium due to fear of potential supply disruption has increased.

Gheit says crude prices can fall to USD 90 or even below by December.

“I am very confident that the US will end up lifting the ban on oil exports and that will bring crude oil prices lower, at maybe USD 10 lower from current level,” Gheit says.

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