The hedge fund manager expects oil to hit $250 this year – and thinks Russian oil will disappear from the European market forever

Investors and analysts have bypassed each other in recent weeks with predictions about oil prices at a level that would have been unimaginable not long ago.

Last but not least is well-known French hedge fund manager Pierre Andorand, who has built most of his career on trading in the energy sector. According to him, the price of oil could rise to $250 a barrel during the year – more than double the price of North Sea oil that is currently traded.

The statement came at a Financial Times conference in Lausanne, Switzerland this week. British financial newspaper reports.

The reason is the fall of Russian oil from the market. Russia is the world’s third-largest oil producer, and Western sanctions that followed the attack on Ukraine – as well as initiatives by market participants to refrain from buying oil – made it difficult to find buyers. The US has already imposed an import ban, but any restrictions on the European side could have a greater impact.

Both analysts and the International Energy Agency (IEA) talked about the fact that three million barrels of oil per day could disappear from the market. It’s three percent of the entire supply side, in a really tight market.

Wake up – We won’t be back to normal in a few months, Andurand said according to the Financial Times.

– I think we will lose the Russian supply on the European side forever.

Andurand’s commodity fund has doubled so far this year thanks to bets on highly volatile markets, Bloomberg wrote earlier this week.

– It’s not temporary

Another director, Doug King, who manages the RCMA’s Commodity Fund, believes the price of oil could reach $200-$250 later this year.

– This is not temporary. It will be a shock to the oil supply, he said, according to the Financial Times minutes.

The price of oil has already reached $139 a barrel this month, the highest level since the financial crisis, and there has been no shortage of warnings that it could well exceed that in points in the coming period.

Goldman Sachs and Rabobank expect oil prices to be $135 a barrel in the third quarter – in the middle. Morgan Stanley recently forecast an average of $120 in the same period, while Rystad Energy here at home said prices are likely to be between 100 and 130 through the end of the third quarter, but higher from time to time. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.