Oil storage containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021.
Lucy Nicholson | Reuters
While a lot of the market’s attention is focused on volatile stocks like AMC and GameStop, many hedge funds are zeroing in on another trade: oil.
The commodity has been on a tear with surging demand as the global economy reopens.
Maglan Capital, a New York based hedge fund, has the commodity as its top position. In December of 2020 when oil was in the high $30s, just as the FDA was issuing emergency authorization for the use of vaccines, co-founder David Tawil correctly predicted prices would double.
He’s now calling for oil to hit $100 dollars a barrel by the end of the year.