Weekly focus - Oil due for a bounce
Black gold back on track
Oil prices have slumped since early October amid an abrupt positioning unwind among investors accompanied by bearish fundamentals. This may well change as developments related to Iran, 4FV 123 turn supportive. Hence, we see chances of a tactical rebound in the coming weeks and recommend adding exposure, either directly or by exploring option strategies.
Another way of gaining exposure is via energy equities. Q3 results confirmed that energy profits remain in a strong recovery mode and the vast majority of our energy top picks reported double-digit earnings growth. We outline our preferred companies.
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