Undervalued oil stocks offer investment options

Threadneedle is looking for only a moderate fall in the oil price over the next 12 months. Steve Thornber, head of the global oils sector team at Scudder Threadneedle Investments, says the oil price, now around $30 a barrel, is at an unsustainable high. He does not think, however, that it will fall as low as its long-term average which is between $15 and $20. He predicts it will fall to $24 in 2001 and to $21 in 2002. Thornber says the high prices are positive for oil companies, whilst energy-intensive areas, such as transport, logistics, chemicals and airlines, will suffer. Those energy-...