During an interview on the FOX Business Network’s Varney & Co., former Shell (NYSE:RDSA) Oil President John Hofmeister spoke about factors impacting the outlook for oil prices.
There’s been a lot of speculation in the oil market and some think oil prices could even descend below $20 a barrel.
“Well, you never know, and anybody that thinks they have a crystal ball, good luck to them. But there is downside pressure, no question about it, the overproduction taking place relative to demand is an ongoing problem,” Hofmeister notes.
Hofmeister also addressed other factors that could impact the oil markets.
“I think we could see a resurgence of geopolitical concern and to me there is a certain amount of whistling past the graveyard with respect to what’s going on between Iran and Saudi Arabia which could result in oil field violence. If that oil field violence takes place then all bets are off on the high rise, quick rise in the oil price.”