Oil price is good news for commodity stocks

With the price of oil at around $30 per barrel, managers of commodity funds are finding some good opportunities. Graham Birch, head of natural resources sector funds at Merrill Lynch Investment Managers, expects the oil price to stay at present levels for the time being. The decision by Saudi Arabia to increase the production levels will have some impact on the price, but they are likely to be constrained by other OPEC members, some of whom are showing signs of irritation at the move. The big driver for oil prices going forward is likely to be global economic growth. People expect a slo...