Standard Life Investments' head of global equities Mikhail Zverev is looking at increasing his allocation to the oil & gas sector, undeterred by speculation prices may have much further to fall.
Analysts at Goldman Sachs have warned oil could plummet as low as $20 per barrel due to an underestimation of the global surplus and failure by OPEC to cut production. Zverev (pictured) dismissed the possibility of such a dramatic fall, but acknowledged the oil price will "stay lower for longer", after the price of Brent has halved from $100/barrel to its current value of $49 over the past year. "We are looking closely at oil and gas companies," the manager said. "The sector has been bombed out, but the demand for oil is OK. Despite the forecast that oil will stay lower for longer we ...
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