Manassas | Russell T. Rudy Energy LLC
Pierre Andurand, chief investment officer of Andurand Capital Management in London, is renowned for having predicted the oil collapse. “World Oil” reports that he is predicting a “multi-year bull run” now that low prices have curbed supply.
Andurand sees an oil price of $60-70 this year, and $80 in 2017. He reasons, “Large spending cuts are taking a toll on operational maintenance. After having been in an oversupplied market we expect inventory draws to start in a few months and accelerate quickly.”
Extensive lay-offs, capital curtailments, and project cancellations are beginning to take their toll on output, and prices have recovered somewhat from 12-year lows. Saudi Arabia has already achieved its goal of forcing rivals to cut back on production. Andurand thinks that the desert kingdom is now using diplomacy in an effort to influence fellow producers to help avert a price surge in coming years as output falls short of demand.
Andurand concludes, “It is possible that the Saudis are now less worried about short-term downside risk than medium-term large upside risk.” He thinks they want to avoid a significant supply gap and consequent price spike.
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/3/30/oil-trader-who-predicted-slump-sees-bull-run-starting .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
