The European gas and power crisis, kick-started by Russia's invasion of Ukraine and deepened by Western sanctions, has put many countries on edge this winter. However, top energy trader Pierre Andurand believes the worst has passed. He claims that Russian President Vladimir Putin has “lost the energy war,” and Europe is no longer in fear of an energy crisis.
Andurand Capital, which manages $1.4 billion in assets, saw a staggering 650% gain in its Commodities Discretionary Enhanced fund from the start of 2020 until the end of last year. Andurand himself has made his name by correctly predicting energy market moves, and he believes that Putin made a costly mistake in cutting gas exports to Europe. He has since closed out all of his positions in natural gas markets, betting that last summer's price spike is unlikely to repeat as Europe adapts to life without Russian supplies.
Andurand also believes that crude oil prices have fallen too far in recent months and could rally when China's economy rebounds. He even speculates that crude prices could hit $140 per barrel later this year.
The CEO of one of Europe's largest energy companies has warned that Europe is still in the midst of an energy crisis and may need to resort to rationing energy again in order to prepare for the upcoming winter season in response to the decreased Russian supplies. Nevertheless, it appears that Putin has lost the energy war and the worst of the European gas and power crisis has passed.
0. “Vladimir Putin ‘lost the energy war' as crisis fades and prices come back down, says top trader” msnNOW, 10 Feb. 2023, https://www.msn.com/en-us/money/markets/vladimir-putin-lost-the-energy-war-as-crisis-fades-and-prices-come-back-down-says-top-trader/ar-AA17l89g
1. “Energy lifeline for millions as gas prices tipped to plummet in huge humiliation for Putin” Express, 10 Feb. 2023, https://www.express.co.uk/news/science/1733144/energy-lifeline-putin-humiliated-eu-gas-prices-fall-russia-lose-war-ukraine
2. “Andurand Putin Has Lost The Energy War” OilPrice.com, 10 Feb. 2023, https://oilprice.com/Energy/Energy-General/Andurand-Putin-Has-Lost-The-Energy-War.html
3. “Putin has ‘lost the energy war', top trader claims as he ends bets on high gas price” Financial Times, 10 Feb. 2023, https://www.ft.com/content/d52bcb07-ba5f-4ffd-a919-53bcf9085690