Pierre Andurand’s losses widen. The world top oil trader’s fund, Andurand Capital, shed 7% of its profit over the third quarter of 2018 year to date.
Pierre Andurand’s losses widen in the wake of massive bullish oil bets that failed to pay off.
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.
“Pierre Andurand’s losses widen in the wake of massive bullish oil bets that failed to pay off”
Pierre Andurand’s Andurand Capital recently bet early this year that oil would reach 100 USD a barrel.
“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.
But Pierre Andurand’s losses widen following crudes recent pullback.
Indeed, Pierre Andurand, who has been one of the most bullish oil investors, lost 15.2 percent in July after markets sold-off.
Pierre Andurand’s Andurand Capital fund is currently into the red for the year, according to people familiar with the matter who wishes to remain anonymous.
“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”
Following July’s oil sell-off the oil-focused Andurand Capital Management LLPfund was down 5 percent since the first seven months of the year.
Pierre Andurand’s losses widen as the oil bull have been tripped up by Saudi Arabia’s decision to ramp up production.
Opec countries have recently come under pressure from US President Trump to lower fuel prices by boosting production.
Saudi Arabia, a major Opec country has bowed to pressure to increase production. Trump told Saudi King that he would “not last two weeks” without US military protection.
“Trump told Saudi King that he would not last two weeks without US military protection”
Pierre Andurand’s losses widen underscores the fact that it is more often politics and not economics that determines the price of oil
The current US administration wants to strengthen former president Nixon’s petrodollar agreement which goes something like this; Saudi Arabia is a rough neighborhood so the US tells the Saudis that they’ll rise to the security challenge. The US provides protection and puts a cop on the beat of every neighborhood street. But the deal is that Saudi’s pump more oil. That generates more oil dollar revenue which then gets recycled into profits for America’s military-industrial complex and other industries servicing it.
The petrodollar agreement creates demand for dollars and helps the Empire fund its finance-guzzling military. For that very reason, sustainable energy is dead in the water. Will we really see mass electric transport in a decade?
So Pierre Andurand’s losses widen but don’t hold your breath waiting for oil to sink to its all-time low of 28 USD a barrel as it did in 2016.