Oil price volatility: Why it should not deter investors

COMMODITIES

Geopolitical events may cause aggressive short-term moves in the oil price but there is still room for optimism, writes Tom Nelson, co-manager of the £206.3m Guinness Global Energy fund.

There is never a dull moment as an investor in energy equities. If the Four Horsemen of the Apocalypse which loom over all fund managers in the form of the European debt crisis, China slowdown, OECD recession and fear of inflation are not enough, energy fund managers have weather and geopolitics to contend with as powerful market forces. Brent crude is approaching $120 again on the back of cold winter weather and tensions surrounding Iran, and this presents a good moment to consider the outlook for energy investing in 2012. Oil price to trend marginally lower Global oil prices have ...