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One up side of oil industry infrastructure bottlenecks for refiners is that stranded domestic West Texas Intermediate sells at a steep discount to globally traded Brent crude. Even when pipelines catch up, home-produced oil may still be cheaper.
One up side of oil industry infrastructure bottlenecks for refiners is that stranded domestic West Texas Intermediate sells at a steep discount to globally traded Brent crude. Even when pipelines catch up, home-produced oil may still be cheaper.
(TODD KOROL/REUTERS)

Why a top hedge fund manager is betting against oil

The annual Sohn Investment Conference taking place in New York is pretty much the Oscars of the hedge fund industry. A cavalcade of helicopter-commuting billionaires presenting investment ideas while being given plenty of media coverage is, if anything, even more obsequious than Oscar night.

Amid the hype, Canadian investors should take particular note of PointState Capital manager Zach Schreiber, who is betting heavily that West Texas Intermediate crude oil prices are heading “much lower.”