Finally, some positive predictions on Oil

Pierre Andurand, hedge fund manager, has predicted all of the major turns in the oil market in recent memory. And now, he is trying to do it again.

Andurand believes that we have seen the bottom of oil and that we are going to see the market come back again. His reasoning behind this is:
-the extended period of low oil prices has had a significant impact on oil supply
-there is very little spare capacity in the system to make up for any drop in production

Andurand thinks global supply will start to decline in as little as a few months, and that those declines will accelerate quickly. Others that agree think oil will head higher in the second half of this year, and some are even predicting $70 oil by the end of 2017.

It might be speculative, but it is great to focus on the positive side and see that there is a light at the end of the tunnel, and that there are facts that point to evidence of the market being able to correct itself in the not too distant future.

Source: Chudley, Jody. Agora Financial. “Midweek Briefing – For Investors to Leverage an Oil Rebound”. 6 Apr 2016.

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