A leading global energy market academic warned that crude prices could sink back to $30 a barrel if OPEC fails to make additional cuts to production.
"The problem is that there is too much oil on the market. There is too much oil from the U.S., too much oil from Libya, too much oil from Nigeria," said Fereidun Fesharaki, founder and chairman of consulting group FGE, which focuses on oil and gas markets east of the Suez and in Europe and the U.S.
"While the demand is robust, there is a serious likelihood that prices will sink next year to $30-$35 a barrel and will stay there for a while," he told Squawk Box on the sidelines of the Credit Suisse Australia Energy Conference in Sydney on Wednesday.
Fesharaki, who has studied Asia Pacific and Middle East energy markets since the early 1980s, said he believes the so-called red line for Saudi Arabia is 9 million barrels of oil per day, and any failure to cut below that level would cause a price pullback.