Pierre Andurand is one the world’s best-known billionaire oil traders, who in September 2015, correctly forecasted that crude would slump to between $25 and $30. Five months after Andurand’s call crude did slump from between $25 and $30.
But the oil trader has not always been bang on the money. Indeed, Pierre Andurand’s $2.4 billion funds lost 20% in May 2011, or $500 million.
“Demand growth has rarely been this strong, global oil reserves peaked 30 years ago, new oil discoveries are at all-time lows, and we think non-OPEC, ex-U.S., production is doomed at current prices”
PIERRE ANDURAND
Forecasting the price of crude is a tricky business with many moving parts.
Nevertheless, Pierre Andurand’s big fund which specializes in crude oil, known as Andurand Capital is betting against the herd this time with his big bullish call on crude oil.
“Demand growth has rarely been this strong, global oil reserves peaked 30 years ago, new oil discoveries are at all-time lows, and we think non-OPEC, ex-U.S., production is doomed at current prices” said Andurand at the Sohn Conference in London.
“So production is pretty much in terminal decline, and the question that everyone really wants to get an answer to is: Can U.S. shale really fill the gap? Another question is: Are current geopolitical risks priced in?” he said.
The answer to both questions is “no,” said Pierre Andurand.
Indeed, geopolitical risks in 2018, particularly the middle east could mean that crude oil prices could spike in 2018.
“Geopolitical risks in 2018, particularly the middle east could mean that crude oil prices could spike in 2018”
