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Ashburton’s Robinson sees supply tightening in oil market

Massive cuts in oil industry capital expenditure has set the stage for a drop in inventories over coming months, leading to upward price pressure in 2018, says Richard Robinson, investment manager, Ashburton Investments.

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While acknowledging that big falls in the price of oil have not been enough to convince some asset allocators and investorss that now is the time to get back into the asset class, Robinson is convinced a change is coming.

He thinks that by the end of this year oil prices could be around $60 a barrel, rising to around $65-$68 a barrel in 2018 and heading above $70 in later years.

 

 

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