Alain Bokobza, head of global asset allocation at Societe Generale, told CNBC’s Squawk Box that OPEC was likely to be forced to cut production next year as low oil prices were hitting producing economies.
“We’ve seen OPEC not cutting when OPEC is bleeding currently” said Bokobza.
With Saudi Arabia’s budget deficit at 22 percent of the GDP, the oil behemoth can’t hold out that much longer, he added.
“At some stage they need to agree with some big OPEC producers, [and] that means Iran [to cut production], and they will come to the market sooner rather than later [to cut] production. That day, better not be short oil.”