This archive report was first published on 24 May 2020.
On April 20, 2020, French oil trader Pierre Andurand tweeted that oil could turn negative in a perfect storm of evaporating demand, chronic oversupply, and scarce storage.
"There is no limit to the downside to prices when inventories and pipelines are full. Negative prices are possible," Andurand tweeted, cautioning that such an event would be short-lived.
Just hours later, New York light sweet crude plummeted into negative territory for the first time in history, with West Texas Intermediate crude hitting a historic low of minus $40.32 per barrel.
Andurand's remarkable prediction was not his first correct call on the oil market. He had previously forecast that oil prices would strike a record peak of $147 per barrel in 2008 and crash during the global financial crisis.
Speaking to AFP, Andurand attributed his success to his detailed market analysis, which involves assessing the impact of changes in demand and supply on oil prices.
Andurand's funds have skyrocketed in value since his prediction, winning a three-digit percentage since the start of the year. However, his funds have also lost money in recent years in choppy trade.
As the market continues to recover, Andurand now forecasts prices to continue to rise, judging that production cuts have been sufficient to soak up excess supplies.
