Well-known oil trader Andrew Hall, managing $ 2 billion of assets in the hedge fund Astenbeck Capital (materials and energy), got burned on a hot conviction that oil will rise in price - by AMarkets materials.
In January Astenbeck Capital Fund fell by 4% (Reuters Data). In 2015, the fund lost more than 36% - is the maximum minus the company's history. In the current year the price of oil has fallen to 12-year lows. The S & P GSCI Crude Oil Index sank 22% last week. Starting in 2016 turned out to be even tougher for the "black gold" than the entire 2015th.
The experts, who believe in the growth of oil prices in the short term, are based on the model that the low prices will definitely make oil producers to compress the volume of production. Reduced production, the use of current reserves from the storage of raw materials will lead to the formation deficit, followed by a rise in prices. It is from these assumptions, forecasts are born at the level of $ 60-80 per barrel in 2017. However, so far none of the miners is not going to take positions.
There is a tough game of dumping. Those who depart from it, will lose share. Who will last longer than any - will get more markets and the most promising prospects for the future.