Andrew J. Hall, the head of commodity hedge fund Astenbeck Capital, and sometimes referred to as the “Oil God” is still holding onto his view that the price of oil will rise substantially from current levels.
In Astenbeck’s second quarter letter to investors, a copy of which has been reviewed by ValueWalk, Hall writes that if you look past the media hype, oil market fundamentals are steadily improving, however, “the market is not concerned whether current prices are sustainable. The market is being driven by its own momentum and currently that is down.”
More from Andy Hall:
- Andy Hall’s Astenbeck Capital 2015 Annual Letter – Oil Is Going Up
- Andy Hall Sticks To Long Oil Bet As Hedge Fund Tanks 35% [LETTER]
- Andy Hall Astenbeck Capital Q2 Letter: The Missing Barrels
- Andy Hall: Global Oil Demand To Be Higher Than Many Expect
- Andy Hall: Saudi “Rockefeller” Style Plan on Oil Could Backfire
But in the August 1st letter Hall doesn’t expect this trend to last much longer. He continues, “extreme positioning coupled with improving fundamentals should ultimately – and at potentially any time – result in a strong reversal. Thereafter, as the improving supply and demand picture becomes more apparent, prices will need to rise to higher levels on a more sustained basis if future supply is to be adequate to meet future demand.”
This isn’t the first time Hall has made such a forecast. Within Astenbeck’s first quarter letter to investors Hall claimed that the price of oil is heading to $80 a barrel during 2016 thanks to a smaller than expected oil “glut”, moderation of rhetoric from Saudi Arabia and “near total capitulation” by E&P companies – see: Andy Hall: Oil Prices Could Be Headed To $80 In Next 12 Months
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