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00:00WE WILL GET SMARTER WITH BLOOMBERG NEWS. LET'S START WITH THE WHY. >> I WILL SAY THAT THE MAIN REASON OIL PRICES ARE HIGHER IS OPEC HAS BEEN TALKING ABOUT A MEETING WITH RUSSIA , THAT IS TO DISCUSS AND OUT FREEZE IT THAT IS BEGINNING TO CREATE THE MARKET. THEY HAVE BEEN FORCED TO COVER THEIR PETITIONS IT THERE HAS BEEN A RALLY IN THE MARKET THAT COULD CONTINUE IN PART BECAUSE OF WHAT YOU WERE TALKING ABOUT. FRANCINE: WHAT NEEDS TO HAVE SO WE CAN CALL IT BOTTOM? >> WE NEED TO GO ABOVE 42. THAT IS WHEN THE MARKET IS GOING TO TURN AROUND. WE ARE GOING TO SEE A LOT MORE RECOVERY. WE NEED TO WAIT FOR OPEC AND WHAT THEY DECIDE. WE SEE THAT WE ARE NOT REALLY SEEING ANY GREAT ACTION FROM OPEC COUNTRIES. THE MARKET COULD SEE A MOVEMENT GOING INTO. FRANCINE: IF PEOPLE LIKE YOU NEED TO MAKE A CALL ON IT, IS A GOOD TIME TO GET BACK INTO THE INDUSTRY? JAMES: OIL PRICES HAVE A SHOT TO THE DOWNSIDE IN THE EARLY PART OF THIS YEAR. WE SEE NORMALIZATION FROM THOSE LEVELS. IT DOES LOOK LIKE IT'S BREAKING HIGHER. WE CAN BREAK IN TO THE LOW TO MID 40'S. IT'S GOING TO TAKE SOME TIME. YOU'VE GOT A LOT OF EXCESS ENERGY AROUND. YOU NEED TO PICK UP THE SEASONAL DEMAND BEFORE YOU GET THERE. WE COULD SEE OIL PRICES IN THE MID 40'S. TOM: JUMP IN IF YOU WOULD LIKE TO DISCUSS. WE TALK ABOUT DEMAND. IS THE DEMAND DYNAMIC OF OIL IN EUROPE NORMAL IN ANY WAY? >> I THINK FOR THE OIL QUESTION, THE MOST IMPORTANT ISSUE TO THINK ABOUT IS THE IMPACT THIS HAS AT THE ECB GOVERNING COUNCIL MEETING NEXT WEEK. THERE IS A LOT OF TALK ABOUT PRESSURE ON DRAGHI TO DELIVER ADDITIONAL STIMULUS. INFLATION IS NOT MOVING IN LINE WITH TARGETS DESPITE THE BANK HAVING BROUGHT ON A TREMENDOUS AMOUNT OF STIMULUS. I THINK THE ECB IS BEING PULLED INTO A DIFFICULT DISCUSSION GIVEN GERMAN OPPOSITION AND OPPOSITION IN NORTHERN EUROPE TO ADDITIONAL'S -- ADDITIONAL STIMULUS. TOM: MY TAKE ON THIS AS A TOTAL HACK IS OIL COMES IN THROUGH ITALY. HELP ME. IT IS THERE AND OKLAHOMA IN EUROPE? >> IT IS ROTTERDAM. IT'S COMPLETELY FULL. INVENTORIES ARE INCREASING. OUR BIG OIL HUB, IT'S VERY HIGH. WE SAW A RALLY LAST YEAR. WHAT HAPPENED WAS THE MOMENT THAT PRICES RALLIED, THEY LOCKED IN PRICES AND CONTINUED PRODUCING. IF THIS RALLY CONTINUES, THE INTEREST RATE IN THE U.S. IS NOT GOING TO STOP. MAYBE WE HAVE A PRODUCTION KEEPING UP LEVELS. IN THAT CASE, WHAT OPEC IS DOING IS KICKING THE CAN DOWN WORDS. LATER THIS YEAR, WE WILL HAVE LOWER PRICES. FRANCINE: THERE IS ALWAYS IN OKLAHOMA QUESTION BY TOM KEENE. WHEN YOU LOOK AT THE ECB ON THURSDAY, HOW SHOULD DRAGHI VIEW THIS DOWNWARD PRESSURE FROM OIL? IS IT HERE TO STAY? >> IT'S A DIFFICULT ONE. WHAT IS THE ADDITIONAL STIMULUS THE BANK CAN BRING ONLINE? I KNOW THAT'S THE DEBATE IN GERMANY. THAT IS THE DEBATE IN FINLAND. IT'S NOT CLEAR HOW DRAGHI WILL POSITIONED HIMSELF. IT'S DIFFICULT FOR HIM TO LOOK THROUGH THIS GIVEN THE EXTENT TO WHICH INFLATION IS NOT MOVING. TOM: THANK YOU SO MUCH FOR

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Oil Is Heading Higher, Here's Why

Bloomberg's Javier Blas reports on the price of oil. Eurasia Group Practice Head Analyst for Europe Mujtaba Rahman and Bank of America Merrill Lynch head of European Equity Strategy James Barty also speak on "Bloomberg Surveillance." (Source: Bloomberg)

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