Will Hedge Funds Drive Oil Prices Even Lower?

9 May 2017   Prices

Andurand Capital reportedly liquidated all of its bullish bets on crude oil in recent days after posting steep losses so far this year. The fund is led by Pierre Andurand, who became notable after correctly predicting the oil price spike in 2008, so the market tends to closely watch what his hedge fund does on oil. Despite its past success at predicting major oil price movements, Andurand Capital was burnt by crude this year. They predicted oil would hit $60 per barrel at the end of last year and rise to $70 per barrel by this summer. As a result of that overly-optimistic positioning, the hedge fund lost 15.4 percent between January and April on bullish bets that went sour, according to Reuters . In late April, Andurand decided to cut its losses and close out its positions, a sign that the oil bulls are retreating. In fact, the […]

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