Famed oil trader Andrew J. Hall has been an oil bull since 2014 while oil prices were above $100, claiming they were headed to $150. I have debate Hall’s arguments presented in his investment letters beginning July 2015 with this one: Debating Andy Hall – Oil Market Conditions and the Future of Oil Prices.
On July 3, 2017, he wrote,
“Not only did sentiment plumb new depths but fundamentals appear to have materially worsened." He recognized that U.S. shale drilling is expanding “at a surprisingly fast rate, thus raising the odds for significant oversupply in 2018, even if OPEC maintains its production cuts."
“At the start of the year, the anchor was thought to be about $60" for Brent crude “and rising over time," Hall wrote. “Today, it appears to be closer to $50 (and possibly still falling)."
In Boslego Risk Services, my model portfolio has performed as shown below. For more information about the premium service in SA Marketplace, click the orange button below.
February 7- July 5, 2017