Investors Being Urged Caution on Oil

As private equity turns its attention to the oil and gas sector amid a slide in oil prices, one executive at the SuperReturn industry conference in Berlin stressed caution.

“The question is: when do you engage? Markets have a history of jumping in too soon,” Mitch Truwit, co-CEO of private equity and venture capital firm Apax Partners, told CNBC.  He said there was a widely held belief that, because oil prices have moved back up to $50 a barrel, it was time to buy.

“I’m not sure I buy that. We have to let it (the oil price move) play out a little longer,” he said. “The effects of things like reducing oil production are not felt in the near term…I bet (oil) will retest lower prices with knock-on effects.”

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.