Oil Rises in Biggest Rally in Seven Years Amid Volatility Surge
- Pierre Andurand says oil prices will rebound this year
- Volatility in WTI crude futures also climbs near 7-year high
How to Determine When Oil Has Hit Bottom?
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Oil rallied, capping the biggest two-day advance in more than seven years after a slump to a 12-year low prompted some investors to buy back record bearish bets.
Front-month futures jumped 21 percent after the February contract expired Wednesday at $26.55 a barrel, the lowest settlement since 2003. Speculators this month amassed the biggest-ever short position in U.S. crude amid concern that turmoil in China’s markets would curb fuel demand at a time when fresh exports from Iran exacerbate a global glut. Pierre Andurand, the founder of the $615 million Andurand Capital Management who correctly predicted the slump in oil prices, said the commodity will end the year higher.