Oil remains a good investment, expert says

Thu, 10 Apr 2008

Those with investments in the commodities market can expect oil prices to continue to rise, one expert has claimed.

Steve Thornber, global equity manager at Threadneedle, explained that oil is one of the few investments which has remained strong in light of the credit crunch and the related economic slowdown.

He said: "Oil prices have been surprisingly strong. Having come through the winter with stronger prices, I see prices remaining high."

Mr Thornber added that a number of factors which would normally cause a fall in the price of oil do not seem to have had this effect, something which he says underlines the strength of the investment at this moment in time.

The fact that countries such as Mexico and Russia are reducing the amount of oil they produce and the "refinery maintenance season" will mean that oil prices will only increase, meaning that it could still be a worthwhile investment, he added.

Prices should remain above $100 (£50) a barrel and will climb higher if there are fears of a disruption to supplies, he concluded.

Yesterday, John Yule of F&C said that risk-based funds are increasingly popular investments .
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UK Investments - Financial, Property & Other Investments - 1998-2008

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