Andrew Hall on Saudi Excess Production Capacity

Andrew Hall, the superstar energy trader whose $100 million 2008 pay package from Citi caused quite a ruckus (and led to him starting a new fund, Astenbeck), recently wrote the following in Astenbeck’s investor letter:

Globally, oil markets look set to continue to tighten through the balance of 2012 … A release of oil from the SPR will certainly have a negative short-term impact on prices but in the longer term, a secular shortfall in supply cannot be eliminated . . .

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