No light at end of oil's tunnel Nomura says

(MENAFN- ProactiveInvestors)It is hard to see light at the end of the tunnel in the oil market according to broker Nomura which today repeated it was bearish on the oil sector. Analyst Christyan Malek continues to believe Saudi Arabia will maintain production at the current levels which is about 10.3mln barrels per day. "Although lower oil prices represent a medium-term risk for the Saudi economy the Kingdom's decision to maintain quotas remains underpinned by its sizable net foreign assets (NOMe: cUSD 1trn) and the country's willingness to stay in deficit for at least five years" the analyst said. "The lack of unity among OPEC members and the inability for several Gulf States (as well as arguably Russia Venezuela) to cut production owing to fiscal pressures and/or strategic ambitions to raise capacity (eg Iraq/Kurdistan) makes for a difficult OPEC meeting on 4 December." Today oil prices rebounded more than 1% although they remain well below US$50. Brent crude in London was up 1.24% trading at US$48.23 per barrel whereas West Texas Intermediary futures were up 1.27% at US$44.85.