Weekly focus - Oil due for a bounce
Black gold back on track
Oil prices have slumped since early October amid an abrupt positioning unwind among investors accompanied by bearish fundamentals. This may well change as developments related to Iran, 4FV 123 turn supportive. Hence, we see chances of a tactical rebound in the coming weeks and recommend adding exposure, either directly or by exploring option strategies.
Another way of gaining exposure is via energy equities. Q3 results confirmed that energy profits remain in a strong recovery mode and the vast majority of our energy top picks reported double-digit earnings growth. We outline our preferred companies.
Important Information:
This report represents the views of the Investment Strategy Department of AAUC and has not been prepared in accordance with the legal requirements designed to promote the place to manage conflicts of interest including policies relating to dealing ahead of the dissemination of investment research. These policies do not apply to the views of Investment Strategists contained in this report. Please find further important information at the end of this material. Singapore: For accredited investors only. Hong Kong: For professional investors only. Australia: For wholesale clients only.
This part of the material: (i) aims to provide macro-market commentary; (ii) does not contain any statements or advice in relation to any specific marketable security or financial product; and (iii) does not take into account your personal circumstances and should not be treated as any form of regulated financial advice, legal, tax or other regulated service.