There’s no doubt oil prices have dropped a long way in recent months. Of course, that begs the question of whether oil prices are near their bottom and worth buying from a medium or long-term investment perspective. Although picking exact market bottoms is fraught with difficulty, from an historical perspective... Show More

John Robertson

Sliding oil prices have been setting the tone for equity markets. There is no history to suggest a permanently high correlation. Oil prices could remain low as equity prices recovered and vice versa. Changes in other intervening factors in a complicated global economic setting will break the nexus eventually. Market... Show More

Wentworth Securities

A number of clients have been asking questions on the current oil price, and if it presents and opportunity. With this in mind, here is a snapshot of what it costs to produce oil, the biggest producers, winners and losers at these levels. Also the possible impact, if Iran is... Show More

Romano Sala Tenna

Unlike the iron ore market which has (at least) 3 major structural headwinds, the factors impacting the market for oil are cyclical and/or transient in nature. We have hence been monitoring this key commodity closely to identify a 'bottom', followed by an accumulation period and subsequent technical break-out. ... Show More

Savita Subramanian, Chief U.S. Equity Strategist at Merrill Lynch says that oil is “extremely undervalued” when considered against the current level of the S&P500. “Last month, the ratio climbed to its highest reading since March 2002. The peak occurred on March 17, when crude retreated to a six-year low of... Show More