- ‘Complete washout’ for crude unlikely, he tells Bloomberg TV
- Fund manager said in February that crude might fall to $15
Commodity specialist John Brynjolfsson cast doubt on the ability of oil prices to continue climbing, predicting that they will probably decline from current levels.
“It doesn’t look like we are going to have a complete washout,” Brynjolfsson said in an interview Thursday on Bloomberg Television. “But there are headwinds” for further gains, he said, such as oil inventories that have reached “eye-popping” levels.
Brynjolfsson spent 19 years working at Pacific Investment Management Co., where he started the Newport Beach, California-based firm’s real-return funds and built them into a business with $80 billion in assets under management. He founded his own hedge fund firm under the name Armored Wolf in 2008, only to return client capital last year amid a slump in commodity prices.
In early February, Brynjolfsson forecast that crude might fall as low as $15 a barrel. Instead, oil prices have almost doubled, now trading near $50.
“I’m still quite bearish on oil,” said Brynjolfsson, who now co-manages the $19.1 million James Alpha Global Enhanced Real Return Portfolio and runs Armored Wolf as a family office. “That is not a view that has played out well in the past weeks.”