Oil stocks benefit from pick-up in global growth

Clerical Medical is overweight in oil stocks, expecting the price of crude in 2000 to remain above that being factored in by the market. Oil has reached $28 a barrel having been only $10 a barrel 12 months ago but the consensus is for it to fall back to $19 during the year, a price which is already being discounted in oil shares. James McLellan, US fund manager at Clerical Medical, thinks the average oil price during 2000 will be higher than $19 because he says demand and supply for oil are well balanced and this should offer support to current price levels. He adds that oil shares are ...