Energy hedge fund eyes US$200 oil on potential export ban

In a letter to investors, Westbeck Capital Management said a lasting impairment to Russian oil exports coupled with demand destruction will probably drive prices into the US$150 (RM627) to US$175 (RM732) range, and could overshoot above US$200 (RM836) – nearly double its current price. (File pic shows oil drilling in Russia)

LONDON: The prospect of restrictions on Russian energy exports could send oil prices above US$200 (RM836) per barrel, according to Westbeck Capital Management.

The London-based hedge fund is among a cadre of commodities-focused funds betting on an extended rally for crude after Russia’s invasion of Ukraine, even as a potential Iran nuclear deal paves the way for Tehran to return to international markets.