Oil Price / May 2018

May 2018

Pierre Andurand, one of the most important hedge fund managers in the oil industry, is convinced: the current reluctance of energy companies to invest in new projects for the production of raw materials will bring the price of oil to “$ 300 a barrel” in a few years.

Oil price Oil Price / May 2018
Oil price

Andurand, known for his bullish positions, wrote in a series of tweets that concern about the impact of electric vehicles on future oil demand is limiting investment in long-term projects.

“Paradoxically, these fears about demand could cause the greatest supply shock in history,” he added, adding that “300 dollars in a few years is not an impossible target”.

The manager of the hedge fund industry, head of Andurand Capital Management, is also opposed to the common view that three-digit oil prices reduce economic growth.

“One hundred dollars a barrel will not kill the economy,” he wrote, adding that “we need prices above this threshold to encourage sufficient investment outside the United States.”

Andurand’s comments are added to those of Saudi oil minister Khalid Al-Falih, who at the beginning of this month suggested that prices could rise further from their current level close to $ 75 a barrel without causing economic damage.

“We have seen significantly higher prices in the past, double than where we are today. The global economy has the ability to absorb a more expensive crude oil, “said Al-Falih.

Last April 24th, the price per barrel of Brent oil exceeded $ 75 for the first time since November 26, 2014. A level from which it folded: today the prices are hovering around 73.77 dollars against 67.44 of the WTI. These levels are far from those of ten years ago: in 2008 Brent crude rose to almost $ 150 a barrel before crashing.


Posted by: Romano Pisciotti

Romano 300x200 Oil Price / May 2018

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