Outlook for UK oil looks good as sector rises 17%

The UK oil sector has performed strongly over the year to 19 August, up 17% relative to the market and up 12% over six months to the same date. Richard Buxton, head of UK specialist equities at Schroders and manager of the Alpha Plus Fund, says analyst forecasts on the oil sector are based on lower prices for this year and the next than is actually likely to be the case. As a result, he favours the sector at present. While he says there is a war premium in the oil price of about $3 a barrel, he believes shares are being priced lower than they ought to be. Buxton says: 'In a...