Pierre Andurand‘s hedge fund doubles in value during the meltup in commodities.

So, Pierre Andurand, the oil trade is having yet another Stella year with one of his money pools returning 82.5% through to the end of September.

The gains by his Andurand Commodities Discretionary Enhanced Fund, disclosed in documents sent to investors this week follows last year’s 154% advance. Pierre Andurand’s older Commodities fund, which returned 68.6% last year, is up 33% for the same period.

“the oil trade is having yet another Stella year with one of his money pools returning 82.5% through to the end of September”

WEALTH TRAINING COMPANY

Pierre Andurand’s Hedge Fund doubles, which was mainly due to August gains from his exposure to emissions

The oil trader believes that the polluter’s right to pollute, provided that they pay, will only become more expensive, and he is not alone. 

Pierre Andurand told clients that he remains bullish on European gas, carbon, and German power markets.

Moreover, the oil trader is forecasting higher oil prices to continue, which he believes will be driven by shrinking inventories, due to strong OPEC+ compliance, muted supply response from U.S. shale producers.

Indeed, crude oil has just hit an oil time high breaching 80 USD per barrel following Oil cartel OPEC’s decision in June to extend its oil production pact beyond April 2022.

During the peak summer holiday driving season, the oil cartel OPEC+ is still withholding some 5.2 million bpd from the market.

Just a footnote the inflation we are experiencing is not driven by booming demand but instead suppliers cutting capacity to adjust to a slowing economy.  

“crude oil has just hit an oil time high breaching 80 USD per barrel following Oil cartel OPEC’s decision in June to extend its oil production pact beyond April 2022”

WEALTH TRAINING COMPANY

So, with supply remaining tight, there is little slack for any unexpected spike in demand, which could be triggered by a colder than expected winter in the northern hemisphere.

“London-based Westbeck Capital Management’s Energy Opportunity Fund also rose 17.2% in September” – Wealth Training Company

Pierre Andurand’s Hedge Fund doubles but the oil trader is not alone in riding the commodity meltup

Other commodities-focused hedge funds have profited from surging energy costs. 

Pierre Andurand told his clients early in 2021 that the world is entering a multiyear bull market for commodities. The oil trader also reiterated that a global shift toward decarbonization is going to support the cycle. The Bloomberg Commodity Spot Index, which tracks 23 energy, metals, and crop futures contracts, has gained about 50% the past year, reaching records.

London-based Westbeck Capital Management’s Energy Opportunity Fund also rose 17.2% in September, boosting gains for this year to 94%, according to Chief Executive Officer Jean-Louis Le Mee. The $210 million funds benefited from Canadian energy equities bets and crude oil options trading.

Pierre Andurand’s Hedge Fund doubles during inflation where suppliers are cutting capacity to adjust to slowing global economic activity

When the oil cartel cuts capacity along with big commercial freight shipping companies that is likely to keep inflation stubbornly higher.