Bloomberg reports that the head of Gunvor Group Ltd. said oil won’t go much beyond $60 a barrel because further gains would trigger an avalanche of shuttered supply.

“Once you hit $60 a barrel, any oil production out there is profitable, and the incentive for oil producers to hold back erodes real fast,” Torbjorn Tornqvist, Gunvor’s chairman and chief executive officer, said in an email.

“The high-$50s are the higher end of our expectation for the first half, and we’re not sure we will see much higher,” the CEO said.

The market is still in the process of rebalancing, according to Tornqvist, who said output cuts by the Organization of Petroleum Exporting Countries and its allies have so far been effective. The current curbs are sufficient to spur a significant draw on crude stocks, while oil-product draws are less pronounced.

“Global products demand is 4 million to 5 million barrels less than it was a year ago,” with the most notable declines seen in jet fuel, gasoline and some diesel markets, Tornqvist said. “Demand for light ends, such as naphtha, remains robust.”