Oil price to surge, says hedge fund manager
China's appetite for energy set to push oil price past late 2007 highs
A prominent hedge fund manager poured cold water on the idea of problem-free Chinese growth on Monday, citing inflation and an appetite for natural resources - including oil and gas - that will create tensions in the near future.
Peter Csoregh, senior portfolio manager of Robeco's Natural Resource equities fund, told the Reuters news agency that the world is heading for a fresh oil price spike before collapsing into a crisis, with China's unquenchable thirst for natural resources contributing to rising tensions.
Csoregh's prediction runs counter to prevailing market sentiment following Saudi Arabia's decision to add more oil supply to hungry markets, particularly China.
Peter Csoregh, senior portfolio manager of Robeco's EUR 100 million ($143.8 million) Natural Resource equities fund, told Reuters that oil prices could hit previous peaks of $147 a barrel given that growing demand from developing markets such as China continues to outpace new sources of supply.
Csoregh warned that tensions were likely to erupt as China vies with the West for natural resources to support its growth rate as the government tries to stave off social unrest.
"Can they (China) double from here, can they triple from here? Sure they can. Is there enough oil or copper in the world to allow them to do that? No," he told Reuters.