Iranian Oil to Bring Global Supply Balance: Shover

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Nov. 26 (Bloomberg) -- Bloomberg's Olivia Sterns and Larry Shover, chief investment officer at SFG Alternatives, put futures in focus with a look at the lasting impact of the Iran nuclear deal on oil prices in "On The Markets." They speak on Bloomberg Television's "In The Loop."

We saw the knee-jerk move lawyer.

Do you think burkett oversold?

I think they did oversell, but keep in mind there is a run- up in the oil price proceeding that knee-jerk reaction.

For that to happen, not a big deal.

Part -- markets are relaying this is a short-term impact on the oil price.

What impact to you think the deal should have on brent in the short and longer-term?

Longer-term the tale of two cities.

Look at brent, over and under supplied.

The global balance picture has not been better in a long time.

There still continues to be the supply disruption from lidia, nigeria, etc.. -- libya, nigeria, etc.. it seems like the market has forgotten drawdowns can happen so quickly out of cushing, oklahoma.

Keystone xl pipelines coming online.

It is amazing.

I think it will may a row and narrow considerably.

Lex you have a super congestion he's. explain to me what that is and what impact you think it will have on the price of crude.

-- you have a super congestion price.

We are super congested.

Refineries are not online, but once they get online and get rid of the light, sweet oil, we get drawdowns through the pipelines.

We will see there is a deficit of oil sooner than later.

I do think we will see the spread narrow as well.

Do you think the refiners are ready to come back online?


That is a great question.

I think that is what is keeping oil where it is today.

I do not think the market is cooled via whole lot.

The market is not fooled very often.

I think the refiners cannot get a line like enough in my thesis is they do get up and there is no problem.

We will see what happens, but i am still very bullish on wit.


moving back to iran.

Say we do get to a deal.

After years of under investment, a lot of people say they cannot flip the switch and get the supply online.

What kind of impact do you think getting the supply back on line would have on the oil market?

I think what it will do, especially in europe and other parts of africa, it will make the case more balanced.

The supply chain will be more balance, much healthier market for brent.

That will not affect wti as much.

It comes to europe, the whole global macro scene will be more balanced than it ever has been.

Thank you for joining us.

Back on the markets in 30 minutes.

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