Aberdeen CIO: Investors Are Not Prepared for a Rise in Oil Prices (FE Trustnet)
Anne Richards, the chief investment officer at Aberdeen Asset Management, says a spike in energy prices due to a rise in the cost of oil could hit markets towards the end of the year – a risk that is not being fully considered by financial markets. Richards was quoted by FE Trustnet as saying:
“One of the risks that is not been taken on-board by markets is around oil and energy prices… People are using the argument that the US is effectively energy self-sufficient because of fracking, so we don’t have to worry about oil prices because it will have less of a direct effect on the US economy.”
“When you put together the Ukrainian situation with gas and the tension in the Middle East with oil, being summertime we are less at risk because we’re not so gas or oil intensive… The first impact of all of the above could be a high and unexpected hike in energy costs as we go into winter and if we have a tough winter it will be doubly so. I think there might be some tension around that.”
She went on to note that oil prices fell in July due to a deal between the Libyan government and rebels in the east of the country but Libyan output has been dramatically reduced since the middle of last year due to a series of strikes by oil workers and disruption to oil facilities by rebels.
To read the whole article, Aberdeen CIO: The threat to markets that investors aren’t prepared for, go to the website of FE Trustnet.
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