The latest view from Julius Baer is that the oil price will stay lower for longer.
So says Christoph Riniker who’s Head of Equity Strategy Research at Julius Baer: “The outlook for oil prices remains unchanged − we believe that the oil price will stay lower for longer. This implies a missing driver for the energy sector going forward.”
He continues: “The current sector underperformance can thus be explained by the missing oil price driver as well as by depressed earnings expectations. We do not expect a reversal of these two factors in the near future and have thus downgraded the sector to underweight.”
