If Opec members' compliance remains loose, oil may fall upto $42: Deshpande

Interview with Abhishek Deshpande, Chief Energy Analyst, Natixis Commodities

Last year's pact between members of Opec, the petro exporters' cartel, and non-members to cut crude oil production has faced several challenges. Abhishek Deshpande, chief energy analyst at London-based Natixis Global Commodities Markets Research, told Rajesh Bhayani oil prices might take longer to rise. Edited excerpts:

Is it Opec members’ breach of output quotas or shale oil supply increase that is pushing oil prices down?

Both. Shale production got revived due to US producers reducing costs and hedging 2017 production at elevated prices after the Opec and non-Opec deal. And, there is rising production from Opec members whose output was