The market is seeing early signs of an oil price bottom as Saudi Arabia and Russia begin to feel the pressure stemming from the glut, Petrie Partners chairman Tom Petrie said Thursday.
Oil prices rallied in the last two sessions on hopes that top oil producer Russia will cooperate with OPEC and the Saudis to strike a deal to tackle oversupply through production cuts.
Saudi Arabia has led OPEC’s policy of keeping production steady and defending market share. But Petrie, who has advised the Saudis on oil policy, said Russia and Saudi Arabia now have a common interest in somewhat better prices.
“Both of them are more in need of an improving price picture than I think has generally been recognized,” he told CNBC’s “Squawk Box.” “When you load in their social and security costs, it’s quite clear that somewhere around $30 per barrel really begins to pinch them.”
“This is the year for the inflection point,” he added.