The oil price will rise above $140 this year, demand for oil from Asia would return
In the crude oil market, Pierre Andurand, the head of the world's largest oil hedge fund, known as the "god of crude oil trading", is the most famous leader in oil industry.
In the latest media interview, Andulan reiterated his prediction made at the end of last year: even if the macroeconomic background is weak in 2023, the demand for oil may still rise by about 4% at some time in the year.
In 2022, the crude oil price is high. Andulan explained that the supply of the oil market in the first half of last year was "almost not growing", while the demand was recovering. At the same time, after the escalation of the Russian-Uzbekistan conflict in February, the market appeared to be worried about the supply of Russian crude oil.
At that time, Andhran also predicted that the international oil price might reach $200 per barrel, but it backfired. The oil price fell sharply in the second half of the year due to the aggressive interest rate increase of the Federal Reserve and the expectation of the US economic recession.
Andulan explained that the decline in oil prices in the second half of last year was mainly due to the fact that the demand was still 2.5 million barrels per day lower than the level in 2019. Most of the insufficient demand came from aviation fuel. The deeper reason was that Asian countries had just begun to reopen. Andulan believed that once the Asian economies were fully reopened, the oil price would rise to more than $140 per barrel, because the market underestimated the boost that Asia might bring to the scale of crude oil market demand.
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