Energy Correspondent, London
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May 16, 2012

Oversold energy shares offer bargains: Lombard Odier

LONDON (Reuters) – A sell-off in energy equities triggered by the fall in crude oil prices and risk-averse investors hugging defensive sectors is creating some attractive bargains, said Lombard Odier fund manager Michael Hulme.

“The market seems to be anticipating a Greek exit from the euro and that has taken energy stocks down much further than seems to be justified, but we have a large number of companies on the substitutes bench that are getting to mouth-wateringly cheap levels,” said Hulme, manager of the Lombard Odier Global Energy Fund.

May 16, 2012

Saudis, soaring costs may keep oil above $100

LONDON (Reuters) – Oil industry executives and bankers are assuming oil prices will stay above $100 a barrel in the year ahead, despite mounting economic worries, as any fall below that level would trigger a cut in Saudi Arabia’s output and force closures at high-cost projects around the world.

A straw poll by Reuters of oil executives, traders, bankers and fund managers showed seven respondents predicting Brent crude trading at $100-$120 a barrel in the next 12 months. Four respondents saw prices at $120-$140 and only four at $80-$100.

May 15, 2012

Allianz Energy targets cost-effective shale plays

LONDON (Reuters) – Allianz Energy is targeting oil companies developing cost-effective, repeatable processes in the shale industry rather than those investing in complex one-off projects that are vulnerable to cost inflation.

“Historically, the oil industry was about producing one-off projects of pretty high complexity,” said Christopher Wheaton, manager of the Allianz Energy Fund, which has some 145 million euros under management.

May 11, 2012

Slow take up hinders new ICE gasoil contract

LONDON, May 11 (Reuters) – The slow take up of Europe’s new
cleaner ICE gasoil contract will be overcome if the exchange
follows the U.S. approach and amends its existing contract
rather than running two versions in parallel until 2015, market
participants said.

Lack of liquidity in the new contract is posing a problem
for fund managers and traders looking to switch, and has led to
suggestions ICE should follow the Chicago Mercantile Exchange’s
example and simply change the specification of its old contract.

May 11, 2012

Energy funds lag, despite better inflows-Lipper

LONDON, May 11 (Reuters) – Falling oil prices and a
worsening economic growth outlook are hitting energy equity fund
returns this year, despite a pick-up in investor flows in early
2012.

Investor sentiment turned against growth-oriented investment
areas such as energy in mid-March as economic data began to
sour. A sell-off in the oil price in May also hit energy stocks
and compounded their underperformance against the broader
market.

Apr 30, 2012

Oil steady above $119 on stimulus hopes

LONDON, April 30 (Reuters) – Oil prices held steady above
$119 per barrel on Monday as the prospect of a third round of
liquidity stimulus by the United States and a weaker dollar
continued to support commodities despite slower economic growth
around the globe.

Brent June crude futures were down 48 cents to
$119.35 a barrel by 0921 GMT, on track to close down for the
second consecutive month. U.S. crude was down 35 cents at
$104.58 a barrel.

Apr 27, 2012

Oil down near $119.50, Spanish downgrade weighs

LONDON (Reuters) – Oil prices eased on Friday, trading at around $119.50 a barrel, due to renewed fears about the state of debt-laden eurozone economies following a downgrade of Spain’s credit rating.

Traders and investors took a more cautious stance after Standard & Poor’s reduced its credit rating on Spain by two notches to BBB+, citing expectations that the government’s finances will deteriorate more than previously thought due to a shrinking economy and an ailing banking sector.

Apr 27, 2012

Oil dips below $120, Spanish downgrade weighs

LONDON, April 27 (Reuters) – Oil prices dipped below $120 a
barrel on Friday on renewed fears about the state of the
debt-ravaged eurozone economies following a downgrade of Spain’s
credit rating.

Traders and investors took a more cautious stance after
Standard & Poor’s reduced its credit rating on Spain by two
notches to BBB+, citing expectations that the government’s
finances will deteriorate even more than previously thought due
to a shrinking economy and an ailing banking sector.

Apr 24, 2012

Smaller managed futures funds tempt investors

LONDON (Reuters) – Smaller managed futures funds able to exploit niche commodity markets and the most volatile conditions are increasingly likely to win assets from investors disappointed with returns from the big trend-followers that dominate the industry.

Managed futures, or commodity trading advisers (CTAs), attracted a wave of assets in 2009 after performing well during the 2008 financial crisis.

Apr 23, 2012

Analysis: Smaller managed futures funds tempt investors

LONDON (Reuters) – Smaller managed futures funds able to exploit niche commodity markets and the most volatile conditions are increasingly likely to win assets from investors disappointed with returns from the big trend-followers that dominate the industry.

Managed futures, or commodity trading advisers (CTAs), attracted a wave of assets in 2009 after performing well during the 2008 financial crisis.

    • About Claire

      "At Reuters I am an energy correspondent covering the oil markets and investment trends in commodities. Prior to this I focused on the asset management industry. Before joining Reuters I edited Global Investor, a monthly magazine for the institutional investment industry, and Portfolio International, a magazine for the offshore funds industry."
      Joined Reuters:
      2006
      Languages:
      English
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