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The reluctance of energy companies to pour money into new production means that an explosive move in crude to $300 a barrel isn’t out of the question, according to Pierre Andurand, one of the oil sector’s most high-profile hedge-fund managers.
At least, that’s what a series of tweets from his account warned before, as Bloomberg reported on Monday, they were deleted.
He said that worries over the electric-car revolution have kept a lid on investment in projects with long lead times. “So paradoxically these peak demand fears might bring the largest supply shock ever,” Andurand wrote. “If oil prices do not rise fast enough, $300 oil in a few years is not impossible.”
Here are the tweets:
No reasons were given as to why the tweets were removed.
Andurand runs Andurand Capital Management LLP. His fund, Bloomberg noted, lost nearly 10% in the first two months of this year amid volatility in the energy market. However, it has closed every year in the green since it was launched in 2013.
At last check, crude was mostly flat in midday trades, while the Dow was up almost 100 points.