A rapid slowdown in production could quickly swing oil prices, according to oil trading Andrew John Hall.
Hall was dubbed the "God" of crude oil trading after making more than $100 million in 2009. He's now the head of Astenbeck Capital Management but set to wind down the fund in a few months.
He's been bullish before and has touted spread trades so his stance isn't a surprise. "Prices at current levels (or lower) are not sustainable for very long," Hall said in the letter. "The current surplus could thus easily set the stage for a future deficit." In early January, he said $40 was close to "an absolute price floor."
In his latest letter, obtained by Bloomberg, he says the surplus in the market is only 2 percent higher than global oil consumption, "and it will have dissipated by the end of the year, if not sooner."
Read more at Click here / www.trade4x.net
Hall was dubbed the "God" of crude oil trading after making more than $100 million in 2009. He's now the head of Astenbeck Capital Management but set to wind down the fund in a few months.
He's been bullish before and has touted spread trades so his stance isn't a surprise. "Prices at current levels (or lower) are not sustainable for very long," Hall said in the letter. "The current surplus could thus easily set the stage for a future deficit." In early January, he said $40 was close to "an absolute price floor."
In his latest letter, obtained by Bloomberg, he says the surplus in the market is only 2 percent higher than global oil consumption, "and it will have dissipated by the end of the year, if not sooner."
Read more at Click here / www.trade4x.net
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