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WATCH: Why oil companies remain bullish

Bassel Khatoun, chief investment officer for MENA equities at Franklin Templeton Investments, discusses oil markets, demand for crude and whether one should be bullish about the commodity in the future.

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Khatoun said that there was product growth of 1.5 million barrels per day this year and that supply levels have been marginalized ever since oil cuts have been agreed upon in September 2016.

He expects a stronger case for oil prices in the longer term, especially that CAPEX have been half their 2013 values as far as investing in depleted oil wells this year.

This all leads to higher price equilibrium for oil.

Read: Oil to average $50 per barrel in 2018: Survey