Oil's Price Jump Is `Big Head Fake,' Says John Brynjolfssonby
John Brynjolfsson, founder of money manager Armored Wolf, said the rise in oil prices probably won’t preclude a drop to as low as $15 a barrel.
"We still haven’t seen that wash out," Brynjolfsson said Wednesday in an interview on Bloomberg Television and Radio. "The cuts that would be needed globally," to bring the supply and consumer demand back into balance.
Crude rose to above $30 a barrel on Wednesday after news of an agreement between Saudi Arabia and Russia to steady global oil markets by capping their supply. Iran supported the accord too, without saying whether it would curb its own production.
"I see today’s rise as a big head fake," Brynjolfsson said. "We still see a lot of blood in the streets and there’s going to be more of it."
Brynjolfsson’s hedge fund Armored Wolf returned outside capital late last year and converted to a family office. The firm’s assets had declined amid a bear market for commodities, one of his specialties.