Liontrust's Fosh: Why we are sticking with our oil stocks

Valuations at multi-year lows

Julian Fosh, co-manager of the Liontrust UK Growth, Special Situations, and UK Smaller Companies funds explains why he continues to back oil stocks on the view returns have bottomed.

Oil prices continue to hover around the mid-low $30s, with several commentators suggesting current lows could last several years into the future. A prolonged period of oil price weakness could have major implications for global stock markets, especially in the UK where the oil & gas sector represents close to 11% of the FTSE All-Share by capitalisation. In the funds we do not invest in exploration stocks but do hold oil services companies Petrofac, Wood Group and Amec Foster-Wheeler. These provide maintenance, support, engineering, and decommissioning services to their customers, the ...