Home > Investments > Commodities
High oil price rewards investors: Barclays
Investors who have stayed the course and kept their investments in oil have been rewarded, as it recently hit new highs for the year of more than $65 a barrel, according to Barclays Stockbrokers.
While some industries that rely on oil, such as automobiles and aviation, have received a battering over the past few months as the recession dug deeper, the recent price highs will reward loyal investors in the commodity, the company said.
Barbara-Ann King, head of investments at Barclays Stockbrokers, said: "There is no doubt the recession has taken its toll on the automobile industry. Takeovers and mergers are rife as companies try to steer themselves away from bankruptcy.
"However, those invested in oil - the lifeblood of the automobile industry - have cause for cheer as the price recently hit highs for the year."
Barclays Stockbrokers said there were a number of reasons why the current high oil price was likely to hold steady, such as reasonably restrictive policies from Opec, the fact medium and long-term projects to find new reserves of oil had been delayed and that new oil reserves were often found in politically volatile countries.
