(Bloomberg) – International oil markets are on monitor to be “extraordinarily tight” within the second half, with costs rising to a degree that may finally constrain demand if OPEC doesn’t carry again extra provide, stated the top of commodities at hedge fund Citadel.
“It has actually fallen again to OPEC,” Citadel’s Sebastian Barrack stated on the FT Commodities International Summit in Lausanne, Switzerland on Monday. The group has “undoubtedly regained management.”
Crude futures topped $90 a bbl final week for the primary time since October as a mixture of sturdy consumption, output disruptions and geopolitical dangers pushed costs larger. Comparable supply-demand dynamics have additionally lifted different industrial commodity markets out of their slumber, with copper hitting a 14-month excessive.
Citadel, a multi-strategy agency based by billionaire Ken Griffin, has grown lately to grow to be the most important hedge fund participant in commodities. It managed round $59 billion of funding capital as of March 1, in line with its web site.
In gasoline markets, the speedy development of U.S. liquefied pure gasoline (LNG) provide within the subsequent two years will probably be more and more necessary for world costs, Barrack stated. Exports of the gasoline join the nation with the remainder of the world and can have an “unbelievable” affect on volatility each domestically and internationally, he stated.
