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Yves here. As this article makes clear, the current optimism about oil prices is based on some remarkable assumptions about Covid, namely that the US has attained herd immunity by summer as Biden warns vaccinations won’t be complete by the end of 2020…even assuming the dogs eat the vaccine dog food.
I thought readers would find it instructive to read why we will be back to the old normal by summer. It must be nice to live in such a comforting bubble.
By Irina Slav, a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. Originally published at OilPrice
Why commodity hedge funds are now betting on an imminent oil price surge
Submitted
By Hugh Leask | 12/01/2021 - 12:55pm
Hedge funds which generated striking returns in volatile energy markets last year are now preparing for a major rebound in oil in 2021, with post-vaccine travel demand, potential inflation hedges, and surging emerging markets growth all combining to push prices higher this year and beyond.
Already, the price of Brent Crude hit USD55.76 on Monday, its highest price since March 2020 during the start of the coronavirus pandemic.
Bullish hedge fund managers now believe several factors could surface to drive prices beyond USD100 in the next few years.