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Andurand Sees $70 Oil Next Year as OPEC Cuts Speed Supply Slide

  • Saudi Arabia wants to avoid ‘large supply gap’ in future
  • Non-OPEC oil output outside U.S. to fall 600,000 b/d in 2016
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How Saudi Arabian Pressure Can Assure OPEC Deal

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Hedge fund manager Pierre Andurand said he expects crude oil prices to reach $60 a barrel over the next three months and $70 next year as Saudi Arabia agrees to cut production and helps rebalance the market.

Saudi Arabia recognizes "a prolonged period of low prices is endangering longer term supplies," Andurand, who foresaw oil’s plunge in 2014, said in an investor note. With reduced supply, the kingdom hopes oil prices will rise sooner, thus avoiding a future supply shortfall amid current global cuts in capital spending, he wrote.