Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Oil Price Might Reach $150 with Economic Growth: Jonathan Waghorn

In the past couple of days, amid the crisis in Iraq, the oil prices have been going up. Recently, the Brent price reached a new 52-week high, and on Monday it has edged up by around 0.4% so far to approximately $112.90. At the same time, many investors and analysts became concerned over the situation in Iraq, even though the south of the country is currently not affected by the insurgency in Iraq, and the country is still able to produce and export crude oil.

Offshore Oil Drilling BP RIG

In a recent interview with CNBC, Jonathan Waghorn of Guinness Asset Management, provided his insights about the oil price, stating that the oil price could go as far as to the $150 mark, being impacted by the growth of the world economy.

“As the world economy continues to grow, let’s say 3% real growth to the end of the decade, we would expect oil prices to inflate alongside. Simple math really takes you to $150 at the end of the decade,” Waghorn stated.

Waghorn also stated that Guinness Asset Management, which returned almost 40% last year, is still fond of energy, stating that it is “an early trade” for the firm in terms of the current macroeconomic environment. In this way, Waghorn said that Guinness runs a long-only energy fund, which consists 100% of equities.

“At the minute we’ve got a balance, we hold all of the majors. We think they are very, very cheap on price earnings, on price to cash flow, on some of the past basis. We still own some U.S. refining, we own a lot of North American unconventional E&P exposure. Recently, we‘ve been adding more European names into the portfolio,” Waghorn added.

Among the top holdings of Guiness Asset Management are companies like Total SA (ADR) (NYSE:TOT), Canadian Natural Resource Ltd (USA) (NYSE:CNQ), and Unit Corporation (NYSE:UNT), however, Guiness has an equally weighted portfolio. Waghorn highlighted another top holding, Newfield Exploration Co. (NYSE:NFX) as a company that “has got a fantastic amount of running room.”

“I think new plays the stack and the scoop, and resources there are growing pretty substantially. And that’s still a very unloved name. It’s less than six times cash flow,” Waghorn said about Newfield Exploration.

Disclosure: none

 

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!