Andy Hall Is Expecting An Explosive Move Higher For Oil

HFA Padded
Rupert Hargreaves
Published on
Updated on
Oil

Andrew Hall, the head of Astenbeck Capital and known by some as the oil God, expects the price of oil to move higher during 2017 as the market rapidly readjusts to lower production and higher demand.

Also see:

Andrew Hall, who has been bullish on the price of oil for much of the past two years, believes that the oil market has already rebalanced and thanks to the agreed OPEC production cuts, global excess inventories – currently around 300 million barrels – should be largely eliminated by the middle of 2017, according to to the hedge fund’s 2016 letter, a copy of which was reviewed by ValueWalk.

In his fourth quarter and full year letter to investors, Hall writes that with excess inventories falling the market will become backwardated and should “allow spot prices to rise above $60 even if deferred prices remain capped, at least for now, by the pressure from producer hedging.”

This content is exclusively for paying members of Hedge Fund Alpha

Log In

Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha

Don’t have an account?

Subscribe now and get 7 days free!

HFA Padded

Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk