—
2014 correct predictions that Chad Brownstein made publicly on CNBC, CNN, Bloomberg Television:- OPEC would not alter output
- Global margin call
- Investors can’t price risk
- Oil below $50
- Russia crisis
RMR has a proven track record of success strategizing the formation, development, and monetization of scalable natural resource enterprises. Recent comments by the company’s CEO, Chad Brownstein, on OPEC oil pricing strategies among other prescient and public calls have proved to be accurate, reaffirming the company’s position as one of the unique teams in the natural resource sector.
On November 21st, Chad Brownstein appeared on CNBC’s “Closing Bell” and correctly predicted that OPEC would not cut oil production at their upcoming Nov. 27th meeting. Brownstein correctly stated, “OPEC won’t cut oil production because they have the issue of the Sunni versus Shiite, Iran versus Saudi issue, but they shouldn’t cut it because they have US markets on their heels right now.”
On a Dec. 12 segment on CNBC’s “Closing Bell,” Brownstein explained that CLOs and CLO managers were being forced to sell as a result of price pressure. This, in conjunction with the high levels of per barrel market leverage, caused a global margin call, perpetuating unnatural levels of sale. “I think we’re getting a lot of unnatural sale right now,” Brownstein explained. “I think we can hit the mid-40s, but I clearly believe that we will see stabilized numbers closer to the 70s long term.”
Brownstein reiterated his forecast several days later. “I think we have had an overreaction. When we gap down to 100 to 75, it really was a supply and demand issue related to the OPEC strategy of not further reducing cuts. The last gap down is a function of the financial markets coming to grips with 18 times derivative leverage for every barrel of oil produced,” Brownstein explained on a Dec. 15 appearance on “Bloomberg television,” which makes him one of the first industry professionals to have issued such predictions. “We’re basically unwinding the $500 billion raised right now. Investors can’t understand and can’t price risk on either side of the balance sheet, so I think we are going to settle in the mid-70s over time.” Brownstein added that he believed oil prices would hit the mid 40s near term but then climb mid-60s and mid-70s over the course of the next 36 months. Brownstein has been directionally correct in predictions made.
About Chad Brownstein
Chad Brownstein is the Chief Executive Officer of RMR Holdings, responsible for the corporate strategy and board oversight for all investments. Mr. Brownstein has been an active member of the resource community for almost two decades, having founded and financed multiple hydrocarbon and mining companies. Mr. Brownstein is the Co-Founder and Vice Chairman of the Banc of California, one of the fastest-growing Southern California depository institutions. Previously, Mr. Brownstein was a principal member of Crescent Capital Group, focused on Special Situations (formerly Trust Company of the West Leveraged Finance Group). Prior to that, he was a Partner at ITU Ventures making venture and growth investments with a specialization in corporate strategy. While at ITU, Mr. Brownstein founded businesses and created exits to companies, including Nokia, Weyerhaeuser, and AMD. Mr. Brownstein attended Columbia Business School and received his B.A. from Tulane University. To read more about Chad Brownstein, please visit http://www.chadbrownstein.com
About RMR
Rocky Mountain Resource Holdings (RMR) a company discovers, finances, and operates natural resource assets. RMR focuses on the identification, acquisition, and monetization of unique natural resource assets that require specialized operating capabilities. Target assets include oil and gas reserves; agribusinesses; energy infrastructure; and industrial minerals and chemicals. RMR seeks to utilize its differentiated operational capabilities to outperform conventional operators through diverse markets. Principals of RMR have been active natural resource investors and operators for a combined 75 years and have worked together for over a decade. The firm has teams in Los Angeles, Denver, and New Orleans. For more information about the company, please visit www.rmrholdings.com.
Release ID: 71827
Google
RSS