Oil Hedge Fund BBL Commodities Sees Brent at $80 on OPEC Cuts - Bloomberg:
"BBL Commodities LP, one of the world’s largest oil-focused hedge funds, believes Brent crude will climb to $80 a barrel this year as stockpiles drop rapidly on the back of production cuts made by OPEC and its allies. "We think the market is vastly overestimating the near term inventory buffer," Jonathan Goldberg, the founder of BBL Commodities, said in an interview last week. "Given the rise in demand over the past five years, inventories are especially low as a measure of forward cover." With crude inventories down, Goldberg expects Brent to climb about 15 percent from current levels of $68.50 a barrel to about $80 a barrel. He also sees further gains in the premium of spot prices to prices further in future, a structure known in the oil market as backwardation."
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