Darius McDermott: Slick on supply, dry in demand

The perfect storm

clock • 4 min read

Whatever happened to those headlines about oil running out in the next 20, 30 or 50 years? Asks Darius McDermott, who takes a look at the commodity through an investment lens

Those headlines seem a distant memory after last week when the price of a barrel went below zero in the US for the first time in history - leaving plenty of oil traders in a very uncomfortable position. 2020 has been a perfect storm for the commodity. Just before lockdown there was a supply war with Saudi Arabia and Russia, which took the price of oil down to $20-25 a barrel - from $60 at the start of the year. With supply rising exponentially, the coronavirus has then completely pulled the plug on demand, as the world basically stopped moving. As we know, most oil is traded in ‘paper...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

Industry Voice: Active vs passive investing - how the debate stacks up

Industry Voice: Active vs passive investing - how the debate stacks up

The active vs passive investing debate shows no sign of abating and can sometimes seem one-sided. But is there a case for both in your clients’ portfolios and, if so, how do you strike the appropriate balance?

Alex Funk, CIO, Schroder Investment Solutions
clock 25 November 2022 • 5 min read
Advisers rate MPS service and support over suitability

Advisers rate MPS service and support over suitability

‘Additional pressure heaped on advisers this year by global events and market shocks’

Ayesha Venkataraman
clock 25 November 2022 • 2 min read

Industry Voice: Uncovering Opportunities for Investors Around the Globe

PIMCO Income Strategy

PIMCO
clock 24 November 2022 • 1 min read