Investment guru Mark Mobius has dismissed claims that an oversup"If you look at the supply and demand growth of oil in the last 20 years, roughly it's been 1 percent growth each year. ply of crude is behind oil's sell-off, and believes the end of the broader commodities rout is in sight.
But within each year, the [price] range has been plus/minus 5 percent," he told CNBC on Tuesday. The price is purely sentimental. It has no real relationship to long-term supply and demand. Brent crude rebounded in Asian trade on Tuesday after losing 5 percent in the previous session, but still traded below USD 50 per barrel— its lowest level since January.
Mobius, the chairman of Templeton Emerging Markets Group, a firm with over USD 880 billion in assets under management, also expressed disdain for price forecasts. "Nobody is an expert on oil prices, not even the top people in the industry. I sit on boards of some of these oil companies and their predictions are way off. They make plans based on where oil will be in the next year or so but with oil below USD 50, that's something nobody ever imagined," he says.
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