Oil: A Once-in-a-Generation Investment Opportunity?

Contrarian fund managers are bullish on the outlook for oil companies. We run down the investment case and pick out a few stocks and funds to play the sector

David Brenchley 25 January, 2018 | 9:35AM
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BP and Shell have high yields, but are they sustainable?

As the oil price continues its unlikely comeback, so too has the investment case for the commodity.

It’s billed by many as the ultimate contrarian call; a sector that is deeply unloved these days. But there may now be enough fund managers bullish on the prospects for oil and the companies involved in its production to dampen that claim somewhat.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen Standard Equity Inc Trust Ord377.06 GBP1.22Rating
BP PLC315.30 GBP0.00Rating
Cimarex Energy Co70.83 USD0.00
EdenTree Responsible and Sust Glbl Eq B339.70 GBP-0.29Rating
EOG Resources Inc81.36 USD0.00Rating
Guinness Global Energy Y GBP Acc6.92 GBP-2.10Rating
HL Select UK Income Shares A Acc109.19 GBP0.13Rating
iShares Core FTSE 100 ETF GBP Dist673.16 GBP-2.47Rating
M&G Global Dividend GBP I Acc400.23 GBP-0.88Rating
Orbis OEIC Global Balanced Standard16.50 GBP-0.39Rating
PDC Energy Inc40.27 USD0.00
Pembina Pipeline Corp38.32 CAD0.00
Pioneer Natural Resources Co156.17 USD0.00Rating
Royal Dutch Shell PLC B1,353.80 GBP0.00Rating
Schlumberger Ltd32.10 USD0.00Rating
Victrex PLC2,430.00 GBP0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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