Moreover, the outlook may get worse if a nuclear deal materializes between the U.S. and Iran. The two countries are currently engaged in talks to reduce Tehran’s nuclear programs in exchange for lifted sanctions.
Speaking to CNBC at the 18th annual Credit Suisse Asian Investment Conference on Monday, Fereidun Fesharaki, chairman of FACTS Global Energy (FGE), warned that prices could even dip beyond those levels for a brief spell.
“Actually, there is no floor to the price of oil. The oil floor is the cash cost of shale, which is about $20-$25, so it can go as low as that but it won’t stay there,” he said.
As a former energy advisor to Iran, Fesharaki believes there’s an 80 percent chance of a deal before the March 31 deadline.
