Damaskos: oil majors have failed to reap oil price rises

Mega-cap oil companies have failed to benefit fully from the long-term rising oil price because of large investments they have made in tangential areas, says the manager of the Junior Oils Trust.

Sector Investment Managers’ Angelos Damaskos, says: “Even in good times, shares of oil majors have underperformed their smaller exploration- and production-focused peers.” Damaskos prefers mid-cap oil & gas exploration firms such as Dana Petroleum and Premier Oil, which he has increased to 5% and 7.5% of the fund respectively. Tullow Oil is another long-term favourite. Damaskos says titans like BP and Royal Dutch Shell are too diversified into refining, distributing and retailing the petroleum they extract and, consequently, their shares are less sensitive to moves in oil. Of BP, D...