Trader Who Called Oil’s Rout Sees Crude Below $40

by William Watts
Market Watch
NEW YORK (MarketWatch)—Investors and traders looking for the oil rout to give way to a V-shaped recovery are likely to be painfully disappointed, said a hedge-fund manager who made a killing betting on falling oil prices in 2014.
“I still believe we’re going to go below $40 and you’re going to have a look at the lows. I think it’s going to happen faster now than people think,” said Doug King, the London-based chief investment officer of the $260 million Merchant Commodity Fund, in a telephone interview on Friday.
The fund saw a 59.3% return in 2014, driven in large part by bets oil prices would fall. Prices for both West Texas Intermediate, the U.S. benchmark, and Brent, the global benchmark, dropped by more than half from their mid-2014 highs by the end of the year and are down for the year in 2015, as well. King said the fund is up around 8.5% year-to-date.
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