Pierre Andurand bullish on oil

Last year Pierre Andurand's made 38% betting against oil but he called the bottom earlier this year and continues to see higher prices.

Bloomberg reports on his latest monthly note to clients, where he highlights the discord in the region.

The Doha failure ""clearly revealed deep disagreement within the [Saudi] Kingdom and rising tensions between Saudi Arabia and Iran ... As a result, we believe that the current escalation in Middle Eastern sectarian conflicts will likely result in more proxy wars that will eventually create more supply disruptions."

In the letter he reiterated that he sees oil back to $60-$70 by year end and $85 in 2017 but supply disruptions "would add a large upside potential" to those forecasts.

"We continue to believe that we are only at the beginning of a structural multiyear rally in oil prices," he wrote.

WTI crude is down 35-cents to $43.87 today.