Hedge fund pro: Brent crude oil price could hit $140 in 2023

on Feb 10, 2023
  • Crude oil prices could hit $140, according to Pierre Andurand.
  • Andurand’s fund rose by 650% between March 2020 and December 2022.
  • He has a spectacular track record and is often compared with Andy Hall.

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Brent crude oil prices have pulled back in the past few months as investors assess the supply and demand in 2023. West Texas Intermediate was trading at $77.41 on Friday, down by about 40% from its highest point in 2022. Similarly, Brent is stuck at $84, ~39% below its highest level in 2022.

Hedge fund pro delivers oil forecast

Brent crude oil price could surge to $140 a barrel in 2023, according to Pierre Andurand, one of the best-performing commodity hedge fund managers in modern times. Andurand has had a spectacular performance recently, with his Commodities Discretionary Enhanced Fund soaring by 650% between 2020 and December 2022. 

He achieved that by accurately predicting that oil prices would crash and then rally during the pandemic. In 2022, he placed bets that natural gas prices would soar after Russia invaded Ukraine. Now, he believes that crude oil prices will soar to $140, helped by the rising demand from China. His call is for Brent, the global benchmark to soar to $140. He said:

“The reopening of China is going to lead to a lot more oil demand growth than expected. It might take a couple of months for the market to recognize the scale of the demand increase we’re seeing.”

Goldman Sachs oil price forecast

Andurand, who is now compared to the famous Andy Hall, is not the only one bullish on crude oil prices in 2023. Goldman Sachs, one of the top storied investment firms, said that production issues could push Brent to $105. In its report, Goldman cited the lingering production challenges and rising Chinese demand. 

On production, many oil and gas companies are simply not investing a lot. Instead, companies like Chevron and ExxonMobil are channeling funds to shareholders through dividends and buybacks. Also, sanctions on Russia by the European Union and the United States will have an impact on prices.

JP Morgan, on the other hand, expects that oil prices will average about $90 in 2023. In its downgrade, the bank noted that sanctions will have a limited impact. 

Meanwhile, Goldman Sachs rival, Morgan Stanley, believes that crude oil price will rise to $110 in 2023.

Technicals are still bearish

Crude oil price
Crude oil chart by TradingView

Despite the bullish talk, crude oil price technicals are still bearish. As the chart below shows, oil has formed a descending channel, which is a bearish pattern. It is now slightly below this channel. Also, the bearish view is being supported by the 50-day and 100-day moving averages. 

Therefore, in the near term, there is a likelihood that Brent could move and retest the lower side of the channel at around $70. However, a successful move above the key resistance point at $90 will be a bullish sign.