Energy hedge fund eyes $200 oil on potential Russia export ban

Energy hedge fund eyes $200 oil on potential Russia export ban

The prospect of restrictions on Russian energy exports could send oil prices above $200 per barrel, according to Westbeck Capital Management.

The London-based hedge fund is among a cadre of commodities-focused funds betting on an extended rally for crude after Russia’s invasion of Ukraine, even as a potential Iran nuclear deal paves the way for Tehran to return to international markets.

In a letter to investors, Westbeck said a lasting impairment to Russian oil exports coupled with demand destruction will probably drive prices into the $150 to $175 range, and could overshoot above $200 — nearly double its current price. It said that spike might in turn fuel rampant inflation, potentially forcing the Federal Reserve to slam the brakes on rate rises.