• 'Tightening fundamentals' behind runup in oil prices
  • Andurand 'not convinced' Iran can maintain oil export level

Pierre Andurand’s commodity fund gained 6.5 percent in April as bullish bets on oil paid off.

The Andurand Commodities Master Fund is up 12.7 percent so far this year, according to a letter Andurand sent to investors, a copy of which was obtained by Bloomberg. Andurand Capital, based in London, manages $1.1 billion. London-traded Brent gained 22 percent in April, rising to $48.13 a barrel on ICE Futures Europe. West Texas Intermediate, the U.S. benchmark, advanced 20 percent to $45.92 on the New York Mercantile Exchange.

"As crude oil prices are pushing higher, many have been questioning whether the rally was justified or excessive," Andurand wrote, adding, "We believe that tightening fundamentals are the main reason behind the move up."

Supply disruptions, including 1 million barrels a day shut in by the wildfire in Canada, have helped shrink the glut of oil, he said in the note. Andurand also said he’s "not convinced" that Iran can maintain exports at 2 million barrels a day. Iran may be boosting its output figures in order to have more bargaining power with Saudi Arabia if the Organization of Petroleum Exporting Countries implements an output freeze, he said.

Rob White, a spokesman for Andurand Capital, declined to comment.

Andurand’s former hedge fund, BlueGold Capital, which managed about $2.2 billion at its peak, closed in 2012 after losses the previous year.

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