Hedge Fund Expects Oil to Rebound to $82/BBL by 2016

by Ship & Bunker News Team
Tuesday June 23, 2015

Crude oil is expected to rebound to $82 per barrel as demand rises and U.S. production slows, according to a Swiss hedge fund, The Telegraph reports

Prices are reportedly expected to hit the estimated amount by the beginning of next year, said Insch Capital Management, with the fund having already begun ramping up oil-related investments.

“After the recent crude oil price declines, the oil rig count has dropped precipitously," the hedge fund said.

"Many oil companies are being forced to sell properties in order to repay bank debt.”

The industry is reportedly in consensus that crude prices will rebound as more and more rigs are closed in the U.S., with some also speculating that oil-driven acquisitions may become more common in the near future

Crude prices plummeted late last year as supply outstripped demand, with prices taking a considerable plunge last November after the Organisation of the Petroleum Exporting Countries (OPEC) maintained its production outputs. 

Despite worldwide concern, OPEC continued to maintain last year that it would not alter its production ceiling no matter how low the cost of crude fell.