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Oil market 'tightening up very quickly' and $90 per barrel is in sight, analyst says

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Very little spare capacity in the market leaves $90 for a barrel of oil a very likely prospect by November, one industry expert told CNBC. Middle East oil ministers told CNBC Monday that they didn't believe oil prices would rise above even $80 in the near term, particularly given Saudi Arabia and Russia's pledge to up production. But, Amrita Sen, a chief oil analyst at Energy Aspect, disagrees. She said potential disruptions threatening certain oil exporters' production capabilities — namely, economic turmoil in Venezuela, social unrest in an oil-rich area of Iraq and U.S. sanctions on Iran — could lead to a sharp increase in prices. "The critical thing is that Venezuela's (production) continues to drop, Iran is finally falling and we had that big timing mismatch — OPEC had increased production too soon, now Iran is falling so the market is really, really tightening up very quickly," Sen told CNBC's "Street Signs" Tuesday. "Iraq, Libya, Nigeria … All three are very, very unstable and only one of these protests really needs to go bad and production will come off," Sen said, referring to protests in Iraq's oil-rich south and potential further oilfield shutdowns in Libya.


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