Noting the “near zero price elasticity” in oil due to sunk costs of existing wells, John Brynjolfsson, a veteran of PIMCO and the chief investment officer of Armored Wolf Capital, observed how the quantity of oil supplied into the market has not been responding to the lower price. John Brynjolfsson: Supply glut could last through the coming quarters The question among many hedge fund professionals is: when will the price of oil rebound? Like a recent Sterne Agee report, Brynjolfsson thinks the oil supply glut could last through “the coming quarters.” In a recent letter to investors reviewed by ValueWalk,…
Oil Supply Picture Wont Change Soon, Says Ex-PIMCO Vet
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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