"It`s watered down. It`s obviously not a cut in and of itself, but they did reach an agreement on, at least, capping further supply growth," said Molchanov on CNBC`s Power Lunch on Tuesday. He called it a symbolic move that may show willingness to move toward a cut.
Although U.S. crude oil inventories are at "historically high levels" for this time of year, according to the Energy Information Adminstration`s Weekly Petroleum Status report, Molchanov predicts inventories will trend lower by the middle of the year as prices recover.
"We are not talking about $100; it`s not going back to $100. But certainly something in the $50 to $60 range; maybe north of $60 looks like a good bet over the next nine to 12 months," Molchanov said.
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