- In his farewell letter to investors, renowned oil bull Andy Hall says he is closing his hedge fund amid a deteriorating outlook for prices next year and a “frustrating” dominance of algorithmic traders.
- "The fact that OPEC has had to talk about further extending its production cuts is ultimately a sign of weakness, not of strength," Hall writes. "The medium-term outlook for oil still looks challenging with, if anything, balances for 2018 having deteriorated in recent weeks."
- There’s currently no consensus on a long-term price anchor due to the disruptive nature of U.S. shale oil, according to Hall, who said earlier this month that he was closing his Astenbeck hedge fund following big H1 losses.
- Hall also says it has become nearly impossible to trade oil based on fundamental trends in supply and demand, leaving the market at the mercy of computer-based trading systems.
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, UGA, DTO, USL, DNO, OLO, SZO, UHN, OLEM, OILK, WTIU, OILX, WTID, USOI
- Now read: Standing On The Shoulder Of Giants And Andurand's Call For 0 Oil In 2020
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