Pierre Andurand, a renowned oil trader and the founder of commodities hedge fund firm Andurand Capital believes better-than-expected oil supplies have been the trigger for recent falls in the price of crude oil, according to a report by Bloomberg.
The report cites Andurand as saying on social media platform X that: “We have had a lot less supply disruptions than in an average year. Iranian and US production have been higher than expected.”
Brent crude futures fell below $80 a barrel this week for the first time in three months amid ongoing global economic uncertainty, including in the world’s second largest economy and key consumer China. According to Andurand though, “mobility data shows an acceleration in demand and demand growth”, suggesting consumption isn’t the cause.
Part of the reason is a rebound in exports by the OPEC+ alliance from exceptionally low levels seen in August, said Andurand, with China’s decision to tap its stockpiles at the same time as OPEC+ shipments were rising, further weakening the overall physical oil market.
