Andrew Hall, the head of Astenbeck Capital and known by some as the oil God, expects the price of oil to move higher during 2017 as the market rapidly readjusts to lower production and higher demand.

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Andrew Hall, who has been bullish on the price of oil for much of the past two years, believes that the oil market has already rebalanced and thanks to the agreed OPEC production cuts, global excess inventories – currently around 300 million barrels – should be largely eliminated by the middle of 2017, according to to the hedge fund’s 2016 letter, a copy of which was reviewed by ValueWalk.

In his fourth quarter and full year letter to investors, Hall writes that with excess inventories falling the market will become backwardated and should “allow spot prices to rise above $60 even if deferred prices remain capped, at least for now, by the pressure from producer hedging.”

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