On Tuesday local time, the Future Investment Initiative (FII) conference, known as "Desert Davos," was held in Riyadh, Saudi Arabia. Pierre Andurand, a well-known crude oil trader known as the "god of crude oil trading" by some media, was also invited to attend the meeting and expressed a strong bullish view on crude oil.
Andulan's career began with the commodity trading teams of Goldman Sachs and Bank of America, and later switched to the well-known commodity trading company Vitol. Starting his business in 2007, he gained fame by betting on the sudden rise in oil prices in 2008 and the rare drop in 2020. According to reports, his Andulan Commodity Enhancement Fund achieved returns of 154%, 87%, and 59% between 2020 and 2022, respectively.
On Tuesday in Riyadh, Andhran expected the Saudi production reduction factors that currently support oil price performance to maintain at least until oil prices rise to $110 per barrel.
Andulan stated that as crude oil inventories decline in the coming months, the market will "pray" for more supply at a certain point in time. The Saudis will decide when and at which price point to release supply again. In his view, the price level that triggered the adjustment is $110 per barrel, so there is still room for improvement in the future.
Starting from July this year, Saudi Arabia voluntarily reduced production by an additional 1 million barrels per day in addition to the existing OPEC+production restriction measures (Russia also followed the production restriction of 300000 barrels per day). Subsequently, the two giants of OPEC+announced in early October that they would extend their production restrictions until the end of this year. Andullan emphasized that Saudi Arabia's crude oil policy will always be the determining factor in prices.
Since then, international oil prices have continued to fluctuate and rise under the influence of multiple factors. Taking oil distribution as an example, it has recently reached a high of $95 per barrel for the year.

It is worth mentioning that since the beginning of this year, Andulan has been standing on the position of a bullish crude oil market, shouting an astonishing prediction of "rising to $140 by the end of 2023" at the beginning of the year. However, as oil prices continued to fluctuate and decline in the first half of the year, his fund also experienced the "largest ever decline".
Listen to what other big shots say
Since the investment conference is held at the home of Saudi Arabia, it is inevitable that many oil industry leaders will attend.
Saudi Energy Minister Abdul Aziz stated on Tuesday that Saudi Arabia's strategy to manage the energy market is "working" and that Saudi Arabia must "ensure a less volatile oil market that will contribute to global economic growth and prosperity". In addition, he also mentioned the huge acquisition deal just reached between Chevron and ExxonMobil, emphasizing that these developments in the US market indicate that crude oil and natural gas will continue to exist.
Amin Nasser, the CEO of Saudi Aramco, also mentioned that he sees a significant increase in oil demand in the future. Apart from the recovery of some major economies, the demand for aviation fuel is still lower than before the pandemic. Amin also stated that the "one size fits all" energy transformation currently underway is unacceptable and must take into account the economic maturity of different countries.
Patrick Pouyanne, CEO of Total Energy, who attended the same event, emphasized the necessity of continuing to invest in the oil and gas industry, as it can "meet continuously growing demand and avoid price jumps." There are now some criticisms that the trend of energy supply investment is wrong.