Noting the “near zero price elasticity” in oil due to sunk costs of existing wells, John Brynjolfsson, a veteran of PIMCO and the chief investment officer of Armored Wolf Capital, observed how the quantity of oil supplied into the market has not been responding to the lower price.
John Brynjolfsson: Supply glut could last through the coming quarters
The question among many hedge fund professionals is: when will the price of oil rebound? Like a recent Sterne Agee report, Brynjolfsson thinks the oil supply glut could last through “the coming quarters.” In a recent letter to investors reviewed by ValueWalk, he expects the glut will be brought into check ultimately as producers lower their production due to lower prices, succumbing...
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