Fund manager: $300 oil is 'not impossible' within a few years

pulse

April 30, 2018 1:47 PM

Pierre Andurand, a leading oil hedge fund manager, said that lack of investment in new production could lead to a situation where $300 per barrel oil is "not impossible" within the next few years.

Leading oil hedge fund manager, Pierre Andurand, said that $300 per barrel oil is "not impossible" within the next few years.
Lack of investment in new production due to low oil prices and fears of electric vehicle peak demand could create higher crude prices, Andurand said in a tweet on Sunday.
"So paradoxically these peak demand fears might bring the largest supply shock ever," he wrote, adding, "If oil prices do not rise fast enough, $300 oil in a few years is not impossible."

LONDON — Pierre Andurand, a leading oil fund manager, said that lack of investment in new production could lead to a situation where $300 per barrel oil is "not impossible" within the next few years, Bloomberg reported.

Andurand, who runs oil hedge fund Andurand Capital Management LLP, wrote in a string of tweets on Sunday that companies may be less willing to risk investment in long term oil projects because of low crude barrel prices and a predicted peak in electric vehicle demand.

The price of oil could then spike in the future if the lower oil production meets higher than expected demand.