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Hedge Funds Betting On $100 Oil

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Options traders expect oil prices to rise above $80 per barrel and reach close to $110 per barrel within the next four years, according to data from the New York Mercantile Exchange and the U.S. Depository Trust & Clearing Corp, reports Bloomberg.


It’s important to take note of these large option trades, probably initiated by the hedge funds, who are betting millions that oil prices will rise. The trades are spread over a period of three years, starting from late 2018 to 2020.


Similarly, a few large traders, such as Pierre Andurand, the founder of the $1.2 billion Andurand Capital Management and hedge-fund manager Doug King, the London-based chief investment officer and co-owner of RCMA Asset Management had predicted large downsides in oil and earned handsome returns for their funds in 2014 and 2015.


http://oilprice.com/Energy/Energy-General/Hedge-Funds-Betting-On-100-Oil.html


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