Oil price performing well
The global energy equities sector offers some interesting opportunities for investors. The sector, which comprises mainly oil and gas producers, refiners and related services companies, has done well this year, rising over 10% as of end-April and comfortably outperforming global equities.
Although momentum has softened in recent weeks, we continue to believe the sector can outperform the market benchmark over the next 6-12 months. In the shorter term, we believe Europe’s energy sector offers a relatively more attractive buying opportunity today as it has lagged its counterparts in the US and China year-to-date. Also, investor positioning appears less stretched in Europe.
