Hedge funds bet on oil's 'big comeback' after pandemic hobbles producers
Hedge funds are turning bullish on oil once again, betting the pandemic and investors’ environmental focus has severely damaged companies’ ability to ramp up production.
Such limitations on supply would push prices to multi-year highs and keep them there for two years or more, several hedge funds said.
The view is a reversal for hedge funds, which shorted the oil sector in the lead-up to global shutdowns, landing energy focused hedge funds gains of 26.8% in 2020, according to data from eVestment. By virtue of their fast-moving strategies, hedge funds are quick to spot new trends.
“By the summer, the vaccine should be widely provided and just in time for summer travel and I think things are going to go gangbusters,” said David D. Tawil, co-founder at New York-based event-driven hedge fund, Maglan Capital, and interim CEO of Centaurus Energy.
Tawil predicted prices of $70 to $80 a barrel for Brent by the end of 2021 and is investing long independent oil and gas producers.
North America’s oilfield services sector, which producers rely on to drill new wells, has been decimated, Rafi Tahmazian, senior portfolio manager at Calgary-based Canoe Financial LP said.
“They’re decapitated from being able to grow,” Tahmazian said. “The supply side is broken.”
https://www.reuters.com/article/us-global-oil-hedgefunds-focus-idUSKBN2A70IM
- Forums
- ASX - By Stock
- Morgan Stanley Reiterate Buy / 100% upside
Hedge funds bet on oil's 'big comeback' after pandemic hobbles...
-
- There are more pages in this discussion • 151 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add KAR (ASX) to my watchlist
|
|||||
Last
$1.75 |
Change
-0.020(1.13%) |
Mkt cap ! $1.405B |
Open | High | Low | Value | Volume |
$1.78 | $1.79 | $1.74 | $5.751M | 3.281M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 10000 | $1.74 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.75 | 7996 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 10000 | 1.740 |
1 | 16000 | 1.735 |
9 | 140495 | 1.730 |
6 | 59347 | 1.725 |
10 | 66251 | 1.720 |
Price($) | Vol. | No. |
---|---|---|
1.750 | 7996 | 1 |
1.755 | 84859 | 3 |
1.760 | 57088 | 4 |
1.765 | 35782 | 3 |
1.770 | 5782 | 1 |
Last trade - 16.10pm 15/08/2024 (20 minute delay) ? |
Featured News
KAR (ASX) Chart |
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO & Managing Director
Charles Armstrong
CEO & Managing Director
SPONSORED BY The Market Online